"Crabman" wrote in message
news:wmxYg.7752$gL.2790@southeast.rr.com...
>
>
>>> Martha was an officer, board member, or something like that on the New
>>> York Stock Exchange, performed illegal insider trading, and lied.
>
> They got her on lying.
>>>
>
> They only got her on obstruction. She was never charged with insider
> trading, because they never found evidence of this.
>
> Clay
The got her on lying and obstruction.
This from SEC LAW.COM:
"The insider trading violation is far from clear, and the worst that
happens is that the SEC threatens a proceeding, and then settles for
disgorgement of the profits and a one time penalty - a total repayment of
$91,346, putting her out of pocket $45,673. The SEC settles most of their
cases in that manner."
"Sure, there is some adverse publicity, but her public relations people
could handle that - "Martha did not know that she was doing anything wrong
in selling the stock, and she has voluntarily returned all of the profits
that the SEC alleges she earned, as well as a small fine. She is happy to
put this behind her...blah, blah, blah." Get a couple of securities
attorneys on CNBC to discuss the law, and it is clear that Martha did not do
anything seriously wrong. In fact, you could even spin that so that it was
the SEC who was conducting an unfair and in appropriate witch hunt."
"Once again, end of story. But Martha did not choose that course of action.
According to the Indictment, she chose to conspire with the broker, and his
assistant, and to fabricate a story about an unwritten stop loss order at
$60 and created the New Story. And that fabrication apparently led to
another, and another and another, and before long, there was obstruction of
justice, and a conspiracy to do so, between Martha and her broker."
"Martha told the New Story to the SEC. Martha had her attorneys tell the New
Story. Martha repeated the New Story to the press, and to anyone who would
listen, and continued telling the story until the broker's assistant began
cooperating with the government, and then she finally did what she should
have done in the first place. She shut up."
"Only by then it was too late. The deed was done, she didn't bear her
troubles bravely, and her remedy was worse than her disease."
"Unfortunately, Martha is going to pay a heavy price for telling the New
Story, and for not learning those simple life lessons. The publicity has
been a disaster for her, her stock is down significantly, she is facing a
significant period of confinement, and now the SEC wants to ban her from
ever being an officer of a public company. All this for $45,673, or for
pride, or for the fear of telling the truth."
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