The new deal would make Dugas Incorporated stock price go from his current $3.14 to maybe $10 or $15 up. Without thinking about the consequences, Roger accessed SP’s operating account and used every last dollar to purchase 470,000 shares in Dugas Incorporated. Roger’s conduct was in violation of Part A of SP’s Code of Ethics, as he engaged in insider trading, by illegally making profit by trading on the basis of nonpublic information.…
In the years of running Galleon group, Rajaratnam cultivated a flamboyant style of leadership. In one stance he offered $5000 to anyone who shock themselves from with a stun-gun. In response, a member tried it and was hospitalized. Rajaratnam’s trouble with the law started in 2005 where he paid over $20 million to settle a federal investigation into a fake tax shelter to hide $52 million. The group also paid $2 million in 2005 to settle an SEC investigation into its stock trading practices. Rajaratnam had Intel employees leak information about sales and production. Raj had deep network of acquaintances, even in Goldman Sach’s, and other corps. He was convicted of 14 charges, and was guilty on all charges, however Raj and his defense team plan on appealing the decision made.…
Insider trading mostly occurs by individuals close to the upper level management of an organization. This type of unethical behavior undermines the stability of the organization. In the ImClone scandal where Martha Stewart was indicted for her involement, the stability of her company suffered and the companies and people associated with Ms. Stewart suffered as a result of her decision. In this essay I will examine the parties that were privileged to knowing ImClone’s stock was going to drop and those who did not know. I will look at the effects of Ms. Stewart’s action, what she could have done different, and the consequences of her actions. Ethical and public issues must be considered when a business executive makes a decision that could affect the entire company.…
In essence, the savvy business leader went from rags to riches (Sorkin, 2002). Unfortunately he would pay the cost for his naïveté when he was indicted of “twenty-two counts of larceny conspiracy and securities fraud” which came at time when many white collar crimes were under high scrutiny. Amid that time even Martha Stewart was indicted and sentenced to jail for her white collar crimes (“Tyco CEO Dennis…,” 2011) which make's people wonder if " that’s a good thing " considering that these practices were basic practices in business, and just a few people were sentenced (“Tyco CEO Dennis…”,…
moved to Boston to live with a relative. To get money he shined shoes, worked at a soda…
This tip which broke the confidentiality policy of the brokerage company led to the subsequent sale of Martha’s shares in the ImClone company during the latter company’s blackout period with the effects of causing the share price of ImClone’s share to drop and the share price of shares of the Martha Stewart Living Omnimedia to drop after the scandal broke that Martha had engaged in insider trading. Through a series of events, she, her broker and his assistant…
LaThis article found in the Wall Street Journal applies to insider trading. Thomas Conradt and David Weishaus bought shares of SPSS Inc. after illegally discovering about their near future acquisition of IBM. They believe Conradt was informed by his roommate at the time in 2009. Conradt then informed Weishaus but asked him to keep quiet claiming “we gotta keep this in the family” and “I don’t want to go to jail”. The two men were arrested last Thursday, November 29, 2012. It is believed that Conradt, Weishaus and three other brokers made more than one million dollars from the information. They each face up to twenty years in prison.…
* Lelyveld, Joseph. Great Soul: Mahatma Gandhi and his struggle with India. New York: Alfred A. Knopf, 2011.…
Why was it more difficult for the Mauryan and Gupta dynasties to build and maintain a large territorial empire in India than it was for the Han Dynasty to do so in China? There are three simple factors that determine why the Mauryan and Gupta dynasties had a more difficult time than the Han Dynasty in building a large empire and maintaining it for long period of time. The three factors are the geographical location and topographical zones, the religion and belief system, and the social structure/status of the people.…
Analyzing Madoff according to our lecture slides about unethical behaviours we tried to understand Madoff’s decisions:…
McLean, B., & Elkind, P. (2004). Smartest Guy in the Room: The Amazing Rise and Scandalous Fall of Enron (2th ed.). Portfolio Trade.…
Ivan Boesky was an American stock trader and was arrested for insider trading scandals in the mid 1980’s. “When indicted on the charges that were brought against him, Boesky was sent to Southern California to a Federal Prison called Lompoc Federal Prison, also known as Club Fed West”(Manning, J, Wolves On Wall street, 2011).…
Healy, Paul M.; Palepu, Krishna G (Spring 2003). "The Fall of Enron". Journal of Economic Perspectives 17 (2): 3…
Begins writing a political column for New York Magazine; writes first openly feminist article, “After Black Power, Women Liberation.”…
becoming licensed, mastered the art of money laundering. Within his profession of a stockbroker, he…