Insider trading is an illegal practice by individuals close to the upper level management of an organization. It relates to a type of unethical operation undermining the stability of the organization.
The Ms.MS insider trading case gained much attention with uncertainty. The case deals with Ms. MS's decision to sell her shares which was made by her broker as told her that the Company CEO Mr. WK and others were selling their shares.
In the Company IMC scandal Ms. MS was indicted for her involvement in insider trading where the stability of her company suffered and the companies and people associated with Ms. Stewart suffered as a result of her decision.
Therefore, Ms.MS committed a crime of insider trading where she sold her shares on December 27 2001 as she received confidential information that CEO of Company IMC and his daughter were selling their Company IMC Systems shares.
The account of Person MS achieved public attention. The Person MS was one of the shareholders of the Company ICS, and she had a stockbroker, Person PB, who maintained her personal and her company's, MSLOI accounts. It originated with ICS's brand-new colon cancer drug-Erbitux, which Person SW, the patron of Company ICS, heard from an executive member of his company, who got a material insider information from a source within the FDA that the drug would be rejected on December 27th, and Company ICS would receive the rejection letter the next day.
Prior to this incident, since FDA's approval is decisive, Company ICS' counsel had declared a blackout period on 21st December, whereby employees were instructed not to trade any of Company ICS shares. The rationale of the blackout was essentially to halt illicit negotiating. Nonetheless, Person SW defied this edict and marketed his shares and his family member's shares. The Person DF telephoned his boss Person PB and apprised him about the circumstances that transpired, and Person PB instantly instructed Person DF to notify Person S about this information. When Person MS received this information, she commanded Person DF to trade all the 3928 shares she maintained in Company ICS when an approximate value of a share stood at $58.43. Suspicious of insider trading, the Company ML informed the Commission SE to investigate the matter.
The Commission SE launched a thorough investigation and discovered that the Person SW had engaged in illegal trading and was convicted. The Commission SE and the government lawyers were keen to catch Persons MS and Person PB B, who hid their illicit engagements profoundly. However, through intensive investigation, the Commission SE and Lawyers from Country U used valid judgment in indicting Person MS as their speculation came out to be true and was backed by pieces of evidence.
The Person MS's indictment is supported by pieces of evidence that proved that she had conspired with Person PB to hide the engagement in illegal trading and denial of receiving any information from Person DF and her assertion that she did not meet the Person PB since December 27, which were found to be incorrect statements. Persons PB and Person MS deliberately delayed the investigation by requesting Faneuil to inform the investigators that Persons MS and PB had an agreement whereby Persons MS agreed to sell her shares only when the value of a share fell below $60, which Faneuil later announced that he had told Person MS about Persons AW and SW's account of selling their shares and Person MS immediately asked him to sell her shares. Therefore, the indictment was based on a series of evidence that manifested a crime of obstruction of justice and conspiracy.
The Person MS was one of the shareholders of Company ICS, and she had a stockbroker, Person PB, who maintained her personal and her company's, MSLOI accounts. The issue began when Person SW, the owner of Company ICS, learned that the new cancer drug would be rejected by the FDA so he traded his shares. Person DF, the assistant of Person PB, informed about this developments to his boss and Person PB instructed Person DF to deliver this information to Person MS, which was breached of confidentiality rule of the Company ML. After learning that Persons AW and SW sold their shares, she immediately followed the same suit. The Company ML got suspicious about insider trading, so the securities Commission SE was called upon to investigate on this matter. Through investigation, the Person SW was found to be engaging in insider trading and was convicted following that. The next target was Persons PB and MS, who relentlessly disagreed with the charges and denied any alleges by the authorities. The securities Commission SE indicted Persons MS and PB with different charges for delaying and not cooperating with the investigation.
The Person MS's indictment is supported by pieces of evidence that proved that she had conspired with Person PB to hide the engagement in illegal trading and denial of receiving any information from person DF and her assertion that she did not meet Person PB since December 27, which were found to be incorrect statements. Persons PB and MS deliberately delayed the investigation by requesting Person DF to inform the investigators that Persons MS and PB had an agreement whereby Person MS agreed to sell her shares only when the value of a share fell below $60, which Person DF later announced that he had told Person MS about Persons AW and SW'S account of selling their shares and Person MS immediately asked him to sell her shares. The indictment was based on a series of evidence that manifested evidently a crime of obstruction of justice and conspiracy.
The jury's statement that Person MS indiction exceeded rational apprehension of the conspiracy and criminal charges is a far-fetched and grossly exaggerated claim, instead, it appeared as another incident of a corporate scandal, whereby the government attempted to portray itself that it was hard on business-related crime by executing a personality for a trivial infraction.