US financial watchdog SEC has charged STEC CEO Manouch Moshayedi with insider trading. The agency alleged the flash guru exploited confidential information to make some money in a secondary offering of STEC shares. The SEC alleged: Moshayedi learned critical nonpublic information that was likely to have a detrimental impact on …
Just the tip of the iceberg
These are just the ones that we get to know about. How many more where they don't make a mistake and rake in the loot ?
Re: Just the tip of the iceberg
>These are just the ones that we get to know about because they have last names that do not indicate European heritage (cough token brown/asian people to make examples of).
There fixed it for ya.
They are contradicting themselves
"Moshayedi did not call off the offering and abstain from selling his shares once he possessed the negative information ... Instead, he... proceeded with the sale"
That sounds like he got the negative information in between announcing the sale of his shares and selling his shares. Nothing wrong with that.
and that this would lower the STEC share price, and alleged that he traded shares based on this information.
That is a different ball game and is illegal
So which one is it? Did he get the information before or after announcing the sale?
Re: They are contradicting themselves
Read the complaint (the article provides a link). Your questions will be answered.
The complaint makes for interesting reading. The email string between Manouch and EMC makes clear Manouch quite intentionally inflated STEC's 3Q 09 revenues, and therefore STEC's stock price, in order to set the stage for his enormous and utterly illegal stock sale.
Yes, it's bad. The good news is STEC itself apparently won't be facing SEC charges.
LAWS ... what are they good for?
"an injunction against Moshayedi forbidding him from breaking federal securities laws" - so the dude breaks a bunch of laws and gets asked please not to do it again? Oh wait, he's a captain of industry isn't he ... so the law of the land doesn't really apply to his sort.