Insider Trading Throwback: Some notorious cases that shook Wall Street

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SEBI has just clamped down on eight entities accused of insider trading. Here's a look at a few infamous insider traders who broke bad on Wall Street.

Insider Trading Throwback: Some notorious cases that shook Wall Street
Eight entities were recently restricted from buying, selling, or dealing in securities by the Securities and Exchange Board of India (SEBI). According to SEBI's prima facie probe findings, eight entities -- including two employees of Infosys -- indulged in insider trading. It has been found that the accused employees allegedly helped a bunch of traders make a cumulative profit of Rs 3.06 crore by dealing in shares ahead of public announcements.
Here are some other famous cases of insider trading all over the globe
Jeffrey Skilling/Enron Corporation
Jeffrey Skilling was involved in multiple white-collar crimes during his time with Enron. One of those crimes included insider trading. Hiding the company’s dire financial status, Skilling dumped $60 million worth of Enron stock before he quit the company just before it got embroiled in a complicated bankruptcy.
R. Foster Winans/The Wall Street Journal
Journalist and columnist Winans found himself facing the scrutiny of the market watchdog when he gave information of his upcoming articles regarding certain stocks to stockbrokers, earning $31,000 in the process.
Albert H. Wiggin/Chase National Bank
Wiggin was perhaps one of the first prolific cases of insider trading in the 20th century. During the 1929 Wall Street market crash spiralling from the ‘Black Thursday’ event, which later led to the Great Depression, Wiggin had short calls on 40,000 shares of Chase National Bank. Wiggin was the head of the bank and had a vested interest in running his own company into the ground.
Ivan Boesky
Ivan Boesky was one of the first major individuals to be convicted of insider trading. Using insider information, Boesky would invest in companies that were about to be taken over. The stock trader later paid $100 million to the Securities and Exchange Commission (SEC) to settle insider trading charges. The character of Gordan Gekko from the movie Wall Street (1987) was partially based on him.
Martha Stewart/ImClone Systems
Famous American businesswoman and TV personality Martha Stewart received an illegal tip from her stockbroker regarding ImClone receiving some bad news that would cause the stock prices to slump. Using the tip, Stewart sold her stocks and came under the lens of the SEC.
 

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