This is BX @ Boxden.com


Mar 14 - 5 Charged With Insider Trading After Alcoholics Anonymous Confession


 Mar 14 - 5 Charged With Insider Trading After Alcoholics Anonymous Confession
topic by Ahura - 03-14-2012, 07:52 AM - Boxden > BX Daily Bugle - news and headlines


WASHINGTON (AP) — Federal regulators on Tuesday charged a Philadelphia investment broker and four others with illegally profiting on insider information that the broker learned from a friend he met at Alcoholics Anonymous.

The group allegedly made $1.8 million from the insider trading scheme, which stretched as far away as Hong Kong.

The Securities and Exchange Commission said Timothy J. McGee, a financial adviser at Ameriprise Financial Services, bought up shares of Philadelphia Consolidated Holding Corp. after learning the insurance company was about to be acquired. A Philadelphia Consolidated executive, whom McGee had known for a decade through AA, had confided that he was facing pressure at work related to the impending merger.

The SEC said the pair had grown close, trained for triathlons together, and McGee had a$sured the executive many times that he would keep any information they discussed confidential. The SEC said McGee instead bought up shares of the insurer and tipped off an Ameriprise colleague, Michael W. Zirinsky.

Zirinsky purchased shares worth hundreds of thousands of dollars through his own trading account, as well as those of his wife, sister, mother and grandmother, and his father also traded on the information, according to the SEC. Zirinsky then shared the tip with a Hong Kong-based friend, Paulo Lam, who passed it along to another friend. That man’s wife, Marianna sze wan Ho, then also purchased a large amount of Philadelphia Consolidated stock, regulators said.

The insurer’s shares surged 64 percent after Philadelphia Consolidated announced in July 2008 that it would be purchased by Japan’s Tokio Marine Holdings. The Zirinsky family made $562,673 selling their shares and McGee made $292,128, while Lam netted $837,975 and Ho’s take amounted to $110,580, the SEC said.

The civil complaint filed in the U.S. District Court for the Eastern District of Pennsylvania charges McGee, Michael Zirinsky, Robert Zirinsky, Lam and Ho with insider trading. The SEC is asking that they be ordered to relinquish the profits from their stock sales and pay penalties.

“McGee stole information shared with him in the utmost confidence, and as securities industry professionals he and Zirinsky clearly knew better,” said Elaine C. Greenberg, a$sociate Director of the SEC’s Philadelphia Regional Office. “As this case demonstrates, we will follow each link in a tipping chain all the way to Hong Kong if necessary.”

Lam and Ho have agreed to settle, with Lam paying the SEC $1.2 million and Ho paying $140,000. The SEC said neither Lam nor Ho admitted or denied the allegations as part of the deal.

The Financial Industry Regulatory Authority, a private group, aided in the case.

5 Charged With Insider Trading After Alcoholics Anonymous Confession « CBS DC


Latest News Hot Topics »   share this topic »   Share this on Twitter Share this on Facebook

10 comments for "Mar 14 - 5 Charged With Insider Trading After Alcoholics Anonymous Confession"


 03-14-2012, 09:53 AMaway - #2
Freemind 41 heat pts41

  d 
space
$8,868 | POWERFUL
They are allowed to do it in congress..

But its illegal for you or I to do it.


 03-14-2012, 10:06 AMaway - #3
Ahura 97 heat pts97

  d 
space
$543 | POWERFUL
Saw an article not to long ago where it showed our members of the govt outperformed the market for several years.
 03-14-2012, 07:13 PMaway - #4
ddubb21 

  d 
space
$2,139 | 4101584
Originally Posted by Universal Mind
They just passed a law which makes it illegal for them to do it too.
who gon catch 'em
 03-14-2012, 09:09 PMaway - #5
thetfd 844 heat pts844

  d 
space
$2,396 | POWERFUL
 03-14-2012, 09:14 PMaway - #6
Sean McDevitt 4 heat pts

  d 
space
$6,711 | 15206239
Originally Posted by Freemind
They are allowed to do it in congress..

But its illegal for you or I to do it.


wow... yes sir.
 03-14-2012, 09:34 PMaway - #7
2godflow 21 heat pts21

  d 
space
$13,844 | POWERFUL
Originally Posted by ddubb21
who gon catch 'em
pretty much. but the fact there was no law against it for sooo long is crazy
 03-14-2012, 09:53 PMaway - #8
supervillain 187 heat pts187

  d 
space
$11,966 | POWERFUL
Sounds like a movie I've seen before...
 
 


Go Back   Boxden.Com - Stay First. Follow BX. > BX Table Of Contents > BX Daily Bugle - news and headlines
    
         

 



Latest hot topics on fire the past 48 hrs
Aug 18 - Mike Brown Paid for Rillos , and Store Owners reported..
70 comments
If you could bring back one cancelled TV Show and/or add a Movi..
79 comments
'GTA 5' PS4, PC, Xbox One Release Date Delayed Until 2015?
55 comments
 Video inside Wshh Presents The Field: Miami (full Video-streets Of ...
New reply 26 seconds ago - 52 comments - by Dray
 Article inside Earl Sweatshirt: Taylor Swift Is "perpetuating Bl...
New reply 7 minutes ago - 231 comments - by andrewspaceship
 NBA Brandon Jennings: Kobe Bryant Is The Greatest Ever
New reply 1 minute ago - 107 comments - by T.O.N.Y.
  Aug 18 - Veterans Say Cops In Ferguson Are Excessively...
New reply 9 minutes ago - 60 comments - by Old Man Quillis
  Make Any Youtube Video Into A Gif
New reply 2 minutes ago - 62 comments - by Jesszman
 NBA Carmelo Anthony Says Knicks Will "absolutely"...
New reply 11 minutes ago - 99 comments - by italiansteve
 Image(s) inside Nelly Embarrasses Himself & Crowd Gets At Him
New reply 3 minutes ago - 116 comments - by Shiva Hysteria
 Image(s) inside Aug 17 - Michael Brown Autopsy Results Revealed. Shot ...
New reply 13 minutes ago - 355 comments - by Kadillac87

Like BX on Facebook Follow BX on Twitter
5,766 fans of BX | none new today 4,746 following | none new today

hot topic blog   »    hip-hop   |   sports   |   movies   |   games   |   news   |   wild'ish   |   gear   |   rides   |   tech

contact us   |   mobile   |   privacy statement

© Boxden.com. 1998 - end of time.