From: barina man <westo@bssc.edu.au>
Date: Fri, 20 Sep 1996 12:03:58 +0800
To: cypherpunks@toad.com
Subject: Insider Trading - news report
Message-ID: <1.5.4.32.19960920013701.0067f4e4@172.24.10.10>
MIME-Version: 1.0
Content-Type: text/plain


>Return-Path: cypherpunks-errors@toad.com
>Date: Thu, 19 Sep 1996 15:46 EDT
>From: "E. Allen Smith" <EALLENSMITH@ocelot.Rutgers.EDU>
>Subject: Insider Trading - news report
>To: cypherpunks@toad.com
>X-Envelope-to: cypherpunks@toad.com
>X-VMS-To: IN%"cypherpunks@toad.com"
>Sender: owner-cypherpunks@toad.com
>
>	I'd be curious as to the comments of Black Unicorn and others on
>that legal finding - it does appear to make things at least a bit better
>in this area... including making it difficult to claim that insider
>information shouldn't be transmitted on the Net. Incidentally, I find
>AP's calling insider trading "fraud" rather biased.
>	-Allen
>
>>     _________________________________________________________________
>>   Direct Media
>>     _________________________________________________________________
>>                        INSIDER TRADING NEVER WENT AWAY
>>   __________________________________________________________________________
>>      Copyright &copy 1996 Nando.net
>>      Copyright &copy 1996 The Associated Press
>      
>>   WASHINGTON (Sep 18, 1996 10:35 a.m. EDT) -- One of the most infamous
>>   acts in the financial fraudster's playbook, insider trading, remains
>>   at record levels, despite a decade of steady crackdowns by regulators.
>   
>[...]
>
>>   The SEC brought one of its more unusual insider trading cases on
>>   Monday, when it sued the unnamed account holders in a Swiss and
>>   Bahamian accounts with insider trading ahead of The Gillette Co.'s
>>   merger proposal for Duracell International.
>   
>[...]
>
>>   One disturbing development for regulators is a recent decision by the
>>   8th U.S. Circuit Court of Appeals that struck down one of the SEC's
>>   main enforcement tools in insider trading cases.
>   
>>   The court, which covers several Midwestern states, rejected the
>>   so-called "misappropriation theory" in insider trading cases, which is
>>   used to nab people trading on inside information who don't owe a
>>   fiduciary duty to the company's shareholders. The court also rejected
>>   an SEC rule used to snare insider trading in tender offers.
>   
>>   The 8th Circuit decision came in August in a Justice Department case
>>   against Minneapolis attorney James H. O'Hagan, who was charged with
>>   insider trading during the 1988 takeover bid of Pillsbury Co. by Grand
>>   Metropolitan PLC. SEC General Counsel Richard Walker has asked the
>>   appeals court for a rehearing on the matter.
>   
>>   While the 8th Circuit decision represents a setback for the SEC, the
>>   agency usually brings its cases in the New York and Chicago areas,
>>   where the federal courts acknowledge these insider trading rules.
>   
>>   Regulators say these enforcement tools are important because insider
>>   trading follows few patterns. In an analysis of 35 cases brought in
>>   1995 that solely dealt with insider trading, Gerlach said 20 involved
>>   trading ahead of mergers, three ahead of other positive corporate
>>   announcements and six ahead of bad corporate news.
>   
>>   He described 16 of the cases as "classic insider trading" involving an
>>   executive, company director or employee who traded on confidential,
>>   market sensitive information or tipped friends about it. Among the
>>   remaining cases, four involved trading by securities brokers or other
>>   industry officials, four involved law firm employees and one, an
>>   employee at an outside accounting firm.
>   
>>   Investigators at the Nasdaq Stock Market's market surveillance unit
>>   refer a significant number of insider trading cases to the SEC. Halley
>>   Milligan, who heads a team of nine insider trading investigators at
>>   Nasdaq, said the market has made 73 referrals on suspected insider
>>   trading to the SEC so far in 1996, which is on par with last year,
>>   when 107 cases were referred to the agency.
>   
>>   Nasdaq, like major stock markets, uses sophisticated computer
>>   technology to sniff out illegal trading. The Nasdaq system is called
>>   SWAT, or Stock Watch Automatic Tracking, which scans news databases
>>   after detecting any unusual trading.
>   
>[...]
>
>>    Copyright &copy 1996 Nando.net
>
>unsubsribe 



please