FYI: —Insider trading evokes images of Wall Street whizzes whispering lucrative secrets, but many offenders are friends and family members of company employees who score modest illegal gains, according to new research.
Half of all inside traders targeted by authorities made less than $59,000, while nearly 40% were friends and relatives of company employees who were close to market-moving information, according to a working paper by Michael Perino of St. John’s University School of Law in New York. The findings contrast with a high-profile crackdown several years ago on extensive networks of well-connected traders including hedge-fund managers and analysts accused of earning illegal profits or avoiding losses totaling hundreds of millions of dollars.
Regards,
Ted
https://www.wsj.com/articles/half-of-insider-trading-defendants-net-less-than-60-000-11552651201
