The Five Biggest Insider Trading Scandals
Source: YouTube · Patrick Boyle · published May 20, 2021 · 22:54
By detailing six extreme cases from financiers to terrorist attacks, the video demonstrates the severe and varying legal consequences of illegal insider trading. 22:49
Key Takeaways:
• Ivan Boesky, who inspired Gordon Gekko, received a record $100 million fine and two years in prison 2:53.
• Martha Stewart sold stock after receiving a tip from her broker, avoiding a $45,000 loss, but was sentenced to five months in prison for obstruction of justice 5:59.
• Raj Rajaratnam became the first insider trading defendant convicted using wiretaps, resulting in an 11-year prison sentence—the longest to date 9:17.
• Steve Cohen's firm SAC Capital paid a $1.8 billion fine for structuring a network to gather information, though Cohen avoided criminal conviction 13:30.
• James McDermott passed tips to a porn star he was dating, earning her $88,000, while he received only a $25,000 fine 18:12.
• A scheme involving pipe bombs on a soccer team bus was used to manipulate share prices, leading to 14 years in prison for the perpetrator 20:29.
The video concludes that while regulators enforce laws through nearly 500 civil actions annually, penalties vary based on the nature and scale of the offense. 22:49
Sources:
- 2:53 Ivan Boesky's cooperation and fine
- 5:59 Martha Stewart's tip and conviction
- 9:17 Raj Rajaratnam's wiretap conviction
- [13:30](https://www.youtube.com/watch?v=hrT2-ixBj
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Transcript Preview
First 800 characters of the transcript
Welcome back to Patrick Boyle on Finance. Today’s video is about insider trading and
the lessons we can learn from it. If you are worried about it being dull, rest
assured, we do have the biggest insider trading scandals here, but those scandals include
strippers, bombers, pickled sharks and even snoop dogg. Foshizzle (I don’t really know what that
means, I was told to say it by a young person). While this was meant to be a top five video,
right before filming I found a sixth one that was so good, I had to shoehorn it in, so stay
tuned to the very end. I guess what I’m trying to say is I’ve
got some good stories for you. Now, When most people hear the term “insider
trading,” they think of the crime. But insider trading is just the trading of
a public company's securities by people with acc…