Saturday, February 16, 2008

Insider Trading

Oleksandr Dorozhko made around $300,000 using insider information. Although he might face criminal charges, he is keeping the money! Apparently a person who gets insider information through 'legal means' (ie bankers, ceo's etc) will be charged with insider trading and will have to forfeit his or her earnings. However if a person 'illegally' obtains insider information (ie hacking or stealing) he or she is not in violation of securities laws at least according to Judge Naomi Reice Buchwald of United States District Court. Dorozhko might be going to jail but he's $300k richer!

Here is the story.