High-profile high-profile commercial cases that rock the road to the wall and beyond
FBI Director Kash Patel on Thursday revealed allegations against current and former NBA players allegedly involved in two sports gambling scandals.
The recent arrests of NBA Pigres Chauncey Billips and Terry Rozier on federal gambling charges have garnered national attention, but financial misconduct is nothing new in the business world.
For years, scandals surrounding insider trading, which involves buying or selling shares illegally based on non-public information, have had powerful figures from corporate personality Martha Stewart.
Here’s a look at some of the more popular arguments linked to insider trading.
What is insider trading?
Rajat Gupta and Raj Rajaratnam
Rajat Gupta, left, is pictured next to Raj Rajaratnam. The former Director of Goldenman Sachs Group Inc. Director Rajat Gupta leaked confidential Bhodical Details to Raj Rajaratnam, former manager of Hedge Fund Galleon Group. (Peter Foley/Bloomberg via Getty Images and Spencer Platt/Getty Images)
The former director of Goldenman Sachs Group Inc. Rajat Gupta was sentenced to two years in prison for illegally importing confidential information on the board of Raj Rajaratnam, hedge fund manager and founder of the Galleon Group.
The tips helped Rajaratnam make millions of dollars between 2003 and 2009, according to the US Department of Justice (DOJ).
Rajaratnam was sentenced in 2011 to 11 years in prison – When he marked the longest insider trading sentence in US history – and was ordered to forfeit $53.8 million and pay a $10 fine and pay a $10 fine and pay.
Kenneth slept with Jeffrey Amakhono
The former evron cef executive. (Dave Einsel/Getty Images/Getty Images)
The one who used to be ceron cesh
A federal judge found that they defrauded investors of Enron’s money while selling the company’s stock. He was found guilty of all six charges against him. Skills was found guilty on 19 of 28 charges, including insider trading.
“The convictions center on a wide-ranging conspiracy, conspiracy and other Enron executives engaged at various times between 1999 and 2001 and others in the actual operation of Enron’s businesses,” federal prosecutors said at the time.
Skills was initially sentenced to 24 years in prison but later commuted to 14 years. He died in July 2006, and an advisory judge later declared his conviction.
The SEC is launching an insider trading investigation into crypto exchanges
Martha Stewart
Martha Stewart is pictured on October 4, 2023, in New York City. In 2003, Martha Stewart was indicted by the SEC for insider trading, accusing her of selling 4,000 shares of ImClone shares in 2001 following a tip from her stockbroker, Peter Bacanovi. (Jason Mendez Photos/Getty Images/Getty Images)
In 2003, Martha Stewart was indicted by the SEC for insider trading, accusing her of selling 4,000 shares of ImClone shares in 2001 following a tip from her stockbroker.
The tip is said to have followed after Imclone’s CEO sold his shares ahead of the Food and Drug Administration’s (FDA) decision on cancer. When the FDA rejected the drug, the stock of IMClone fell by 16%, but Stewart avoided a loss of more than $ 45,000, according to the second.
While Stewart was not found guilty of insider trading, he was found guilty of making false statements, conspiracy and obstruction of justice. He served five months in prison, according to Termopedia.
Steve Cohen
New York Mets owner Steve Cohen speaks to the media before the start of the opening day of the Milwaukee Brewers at the Milwaukee Airport on March 29, 2024, in New York City. (Photo by Jim McIsaac / Getty Images / Getty Images)
In 2016, Steve Cohen, the Billionaire Hedge Fund Manager and now the owner of the New York Mets, was accused of ‘failing to direct the income within the Hedge Fund, the main advisors, according to Sec.
He was barred from managing a client’s foreign currency until 2018.
The company agreed in November 2013 to the security ban and paid $1.8 billion in fines, which at the time marked the largest insider trading fine in US history.
New SEC rules target Insider trading
Ivan Boesky
A photo of a smiling Ivan Boesky in New York, July 29, 1983. Profile of an anthirrageur on a street wall in the 1980s, Ivan Boesky made hundreds of millions by betting. (Getty Images / Getty Images)
The profile of the arditrageur on Wall Street in the year 1980, Ivan Boesky made hundreds of millions by betting on companies that he knew would be taken. His strategy involved buying stocks before announcing merger announcements – a practice that later illegally relied on insider information.
He was sentenced in 1987 to three years in prison and fined $100 million, according to Termopedia.
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He died in 2024 at the age of 87, Reuters reported.
Rajat Gupta, Raj Rajaratnam, Martha Stewart, Steve Cohen and Jeff Brocing did not immediately respond to FOX Business’ request for comment.
