Denying friendships

A simple compliance case.  An employee shares confidential information with a few friends and they trade stocks based on that information.  The employee (now suspended) and the two friends were arrested on criminal insider trading charges.  The employer is cooperating with the SEC’s investigation.  Civil charges pending, too.

“Analyst Arrested On Insider Charges,” The Wall Street Journal, June 27, 2018 B12.  S&P Global Ratings employee allegedly disclosed information about acquisition of Valspar by Sherwin-Williams.

What separates this from the other run of the mill insider trading cases is the fact that the employee apparently denied knowing his two life-long friends.

Lying to the Feds is not a good strategy.

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Filed under Accuracy, Compliance, Compliance (General), Duty, Duty of Care, Employees, Governance, Oversight

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