As a Federal Criminal Defense Attorney ,in Denver, I am constantly paying attention to the latest news on White Collar Crime, especially when it comes to possibly redefining the law. Here is an interesting case about Insider Trading.
Was The Information Great Research or Insider Information?
A recent case involving Raj Rajaratnam and hids Firm, Galleon. In a recent article, Walter Palvo discusses how allegedly Rajartnam took a call from a board member at Goldman Sachs. One minute after the alleged call, Galleon, the firm purchased 175,000 shares of Goldman Stock and sold it the next day after news broke of an investment by Warren Buffet's Company, Berkshire Hathaway. Galleon made an estimated overnight profit of $900,000.
The question posed in the trial is what is considered "insider information" and what is considered great research. It will be very interesting what the courts decide but Palvo had a great quote to his opinion.
"I think insider trading is a bit like pornography….I don’t know how to define it, but I sure know it when I see it."