What kind of insider trader loses money?

Turns out that Raj Raj lost more money on the insider trades than he made. The Times points out that insider trading is insider trading regardless of profitability, but the lack of gain undercuts the prosecution case that the information being passed along was “material” – an essential element of the crime. At the least, the article suggests, this could cut down any potential prison term, which are usually calculated in part on the gain the defendant made. Interesting.

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3 responses to “What kind of insider trader loses money?

  1. Helsa Poppin

    Didn’t Martha Stewart lose money on her insider sale? Or at least made a lot less than she would hvae if she hung on to it?

    She wasn’t even convicted for that, but rather for lying to investigators. And I don’t think it was even a direct lie; I think she erased a message in a phone log, thought better of it, then penciled it in again. Five months in prison for a truly victimless crime.

    • christopherfountain

      If memory serves, Martha lost about $40,000 by panicking and selling, and ImClone was actually back up a short time later. And she probably wasn’t guilty of insider trading because she wasn’t in possession of priveleged material. What she was nabbed for was lying to federal investigators. I do believe that if she hadn’t been Martha Stewart she’d never have been imprisoned but sometimes celebrity works both ways.

  2. XYount

    Here, Kitty…

    You have to wonder about Robert Moffat’s motivation in this whole thing. And why he would associate–and socialize–with the likes of Danielle Chiesi. She is one vulgar hunk of mandroid.

    I posed the question on a different online site and got an interesting response:

    “He did it to get laid!!!”

    Apparently, the commenter “heard” Moffat was boinking some babe, and had access to her through Chiesi. Talk about triangulation (the term Chiesi used to verify her info).

    As the respondent put it: “That’s one expensive piece of a** !”

    No kidding. Let’s hope he’s on to something. It’d be far more more interesting than Raj’s story: “Ugly fat guy does it for the donuts.”