WSJ: Arrests Made in Insider Trading Probe
The Wall Street Journal has an article today on the the case of outside "consultants" working for Apple, Inc., Dell, and AMD who were being investigated for supplying information used for insider trading schemes.
It appears that AMD is the victim of an insider-trading scheme. An A.M.D. spokesman.
The individuals involved in supplying "highly confidential" information to others were well paid "networking consultants". Compensation for such transgressions are said to be in the "hundreds or thousands of dollars". The FBI is claiming that the four arrested were paid around $400,000 over time for their information provided to "hedge funds and other traders". This is said to have gone on over a period of time.
It’s always amazing how someone will throw their career, their reputation, and their family’s comfort away for a few thousand dollars.
UPDATE: Today the WSJ published an article describing yet another insider providing information concerning insider trading events involving hedge fund managers. One wonders how widespread this problem really is (or maybe “wonder” is not really the word I mean here).