If the Feds are ready to throw the book at former MLB All Star Doug DeCinces

[JackStraw77]

Then how will Billy Walters fare when he is sentenced. It's a very similar case. The CEO was a neighbor of DeCinces and tipped him off in 2009 that his company Advanced Medical Optics was going to be bought by Abbott Laboratories. DeCinces purchased 90,000 shares in the days before the sale and sold them after for a profit of $1.3 million. He also passed on the tip to friends and family members. Looks to me like the Feds are going gung-ho on these high profile insider trading cases. Even a friend was convicted. Oddly enough the CEO's trial ended in a mistrial. I'm a little surprised that a third party is convicted. If someone tells you who is not in the financial industry that he hears a company is going to be sold it could be bad information. Why should you be convicted when it's not really inside information. Even if the person telling me is the CEO's neighbor it could just as easily be false information. If the purchase doesn't happen I lose money.


Former baseball star Doug DeCinces was convicted Friday of insider trading for a stock buy that earned him more than $1million.
The ex-Baltimore Orioles and California Angels third baseman was convicted of 14 federal charges and could face decades in prison.
Since each charge carries a maximum sentence of 20 years in prison, DeCinces could receive jail time in excess of 220 years.
Jurors deadlocked on 18 other charges and a judge declared a mistrial for those counts, according to the US attorney's office.
Ken Julian, an attorney for DeCinces, said he planned to ask for a new trial.
'Obviously, this is a disappointment for everybody involved,' Julian told the Orange County Register.


Read more: http://www.dailymail.co.uk/news/art...ces-guilty-insider-trading.html#ixzz4gzo7o6um
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[brucefan]

Its time to stop the silliness of trading on inside information. It goes on everyday . Only the select 'unlucky few get caught"

Trade on whatever information you have, and we will have much more efficient pricing of securities

Technical analysis works because of inside information

Why do you think stocks breakout ?

 

[THawk+]

Its time to stop the silliness of trading on inside information. It goes on everyday . Only the select 'unlucky few get caught"

Trade on whatever information you have, and we will have much more efficient pricing of securities

Technical analysis works because of inside information

Why do you think stocks breakout ?

I agree let's investigate all of our Senators and Representatives in DC. Pretty much all of them make money on inside tips.
How they all get rich being in office.. All pieces of shet!

 

[jamesbong]

And the banks and investment houses will forever be beyond reproach.

 

[brucefan]

exactly right

<time class="date-property-single" property="dc:date" abp="401" content="2017-05-15 15:28:03" datatype="xsd:dateTime">May 15, 2017 11:28AM</time>
Why Is Insider Trading Illegal?

By Thomas A. Firey
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Kenesaw Mountain Landis, the legendary baseball commissioner, once said that every boy builds a shrine to some baseball hero, and before that shrine a candle always burns. Growing up a Baltimore Orioles fan during the franchise’s glory days, my shrine had many heroes, including central figures Cal Ripken (HOF 2007), Eddie Murray (HOF 2003), and John Lowenstein. Not central but still part of the shrine was Doug DeCinces, a good glove/solid bat third baseman who manned the O’s hot corner for nine of his 15 major league seasons.
And so I was saddened to read that last Friday DeCinces was convicted of 14 charges of insider trading.
Back in 2008, his neighbor, James Mazzo, then CEO of an ophthalmic surgical supply company, told DeCinces that the firm was about to be acquired by medical giant Abbott Labs. DeCinces owned stock in the firm and purchased more after he learned of the deal. He also shared the tip (though apparently not its provenance) with some friends, including Murray. DeCinces ultimately profited about $1.3 million on the deal according to press reports.
His maneuver seems inoffensive if shrewd; after all, who wouldn’t buy something that he can then sell at a profit? That is fundamental to the marketplace, and it typically makes all participants better-off.
But in DeCinces’ case it’s a crime, and a very serious one. He can receive as much as 20 years in federal prison for each of the 14 charges he was convicted on.
The question is why. Remember that all an inside trader does is act on private information that more accurately reflects the future value of some financial asset than the current price does. He buys or sells that asset at a price that someone else voluntarily accepts. He does nothing that damages (or falsely props up) the ultimate value of the asset. Nor does he hurt the broader financial marketplace; if anything, his trading slightly pushes the asset price toward a more appropriate value.
<!--break-->In fact, as Villanova law professor Richard Booth has explained in the pages of Regulation, it is the legal pursuit of inside traders that hurts other investors and the broader marketplace. Those prosecutions frighten would-be traders away from acting on—and thereby transmitting—their private information. The prosecutions also usually hurt the firms—which is to say the firms’ many innocent investors—because they end up paying large fines and legal expenses. For institutional investors—pension funds, 401k plans, etc.—those losses far outweigh whatever benefits might come from civil recoveries from insider trading and the phantom benefits of “policing” these activities. Really, the only beneficiaries from these legal actions are the well-heeled lawyers and government employees who participate in them.
DeCinces isn’t the first celebrity to be tripped up by fanciful claims of financial crimes. Recall Martha Stewart (pursued by one James Comey, interestingly) and Michael Milken (pursued by Rudy Giuliani), for just two examples.
According to press reports, upon hearing his conviction on Friday, DeCinces could only shake his head, dumbfounded. We should do the same. There is nothing for society to gain from sending him to prison, ostensibly for the rest of his life, for actions that don’t seem worthy of being deemed crimes, let alone federal felonies. Instead of locking away DeCinces and puffing up a new generation of Comeys and Giulianis, it’s time to reform America’s Kafkaesque finance laws.



Topics: Finance, Banking & Monetary Policy, Regulatory Studies https://www.cato.org/blog/why-insid...l&utm_source=facebook.com&utm_campaign=buffer

 

[Willie99]

Its time to stop the silliness of trading on inside information. It goes on everyday . Only the select 'unlucky few get caught"

Trade on whatever information you have, and we will have much more efficient pricing of securities

Technical analysis works because of inside information

Why do you think stocks breakout ?

this is true, I seen it first hand (although I never benefited and I don't know all the facts, I only know people made money)

1) a bank officer buys a ton of bank stocks in the bank she works for, then the bank gets bought out (this happened 20 or so years ago)

2) pharmaceutical sales rep makes some serious scratch in a short period of time on pharmaceutical companies



maybe it's just luck, or maybe just maybe they had a tip