Joe Lewis and insider trading

[fortworthspur]

Sigh.

This is how disinformation spreads, and is believed.


Later investigations revealed that after learning the FDA would refuse to review Erbitux, Sam
Waksal, the CEO of ImClone and a close friend of Stewart, instructed his broker Peter Bacanovic—
who was also Stewart’s broker—to transfer $4.9 million in stock to the account of his daughter
Aliza Waksal. His daughter also requested that Bacanovic sell $2.5 million of her own ImClone stock.
Sam Waksal then tried to sell the shares he had transferred to his daughter, but was blocked by
brokerage firm Merrill Lynch. Phone records indicate that Bacanovic called Martha Stewart’s office
on December 27 shortly after Waksal’s daughter dumped her shares. Stewart’s stock was sold ten
minutes later.

Sam Waksal was arrested on June 12 on charges of insider trading, obstruction of justice, and bank
fraud in addition to previously filed securities fraud and perjury charges. Although he pleaded
innocent for nine months, Sam Waksal eventually pleaded guilty to insider trading and another six
out of thirteen charges. Waksal, who was sentenced to seven years in prison but was released after
five



Martha Stewart, on the other hand, served 5 months....

It starts on Wikipedia I guess. Fuck me, you're smug.

According to the U.S. Securities and Exchange Commission (SEC), Stewart avoided a loss of $45,673 by selling all 3,928 shares of her ImClone Systems stock on December 27, 2001, after receiving material, nonpublic information from Peter Bacanovic, her broker at Merrill Lynch. The day following her sale, the stock value fell 16%.[53]

In the months that followed, Stewart drew heavy media scrutiny, including a Newsweek cover headlined "Martha's Mess".[54] Notably, on June 25, 2002, CBS anchor Jane Clayson grilled Stewart on the air about ImClone during her regular segment on The Early Show. Stewart continued chopping cabbage and responded: "I want to focus on my salad."[55] On October 3, 2002, Stewart resigned her position, held for four months, on the board of directors of the New York Stock Exchange, following a deal prosecutors had made with Douglas Faneuil, an assistant to Bacanovic.[56]

On June 4, 2003, Stewart was indicted by a grand jury on nine counts, including charges of securities fraud and obstruction of justice. Stewart voluntarily stepped down as CEO and Chairwoman of MSLO, but stayed on as chief creative officer. She went on trial in January 2004. Prosecutors showed that Bacanovic had ordered his assistant to tell Stewart that the CEO of ImClone, Samuel D. Waksal, was selling all his shares in advance of an adverse Food and Drug Administration ruling. The FDA action was expected to cause ImClone shares to decline.[57]

Monica Beam, a shareholder of MSLO, also brought a derivative suit against Stewart and other directors and officers of the company. It went before the Supreme Court of Delaware in 2004 and was ultimately dismissed.[58]

 

[Bluto Blutarsky]

It starts on Wikipedia I guess. Fuck me, you're smug.

According to the U.S. Securities and Exchange Commission (SEC), Stewart avoided a loss of $45,673 by selling all 3,928 shares of her ImClone Systems stock on December 27, 2001, after receiving material, nonpublic information from Peter Bacanovic, her broker at Merrill Lynch. The day following her sale, the stock value fell 16%.[53]

In the months that followed, Stewart drew heavy media scrutiny, including a Newsweek cover headlined "Martha's Mess".[54] Notably, on June 25, 2002, CBS anchor Jane Clayson grilled Stewart on the air about ImClone during her regular segment on The Early Show. Stewart continued chopping cabbage and responded: "I want to focus on my salad."[55] On October 3, 2002, Stewart resigned her position, held for four months, on the board of directors of the New York Stock Exchange, following a deal prosecutors had made with Douglas Faneuil, an assistant to Bacanovic.[56]

On June 4, 2003, Stewart was indicted by a grand jury on nine counts, including charges of securities fraud and obstruction of justice. Stewart voluntarily stepped down as CEO and Chairwoman of MSLO, but stayed on as chief creative officer. She went on trial in January 2004. Prosecutors showed that Bacanovic had ordered his assistant to tell Stewart that the CEO of ImClone, Samuel D. Waksal, was selling all his shares in advance of an adverse Food and Drug Administration ruling. The FDA action was expected to cause ImClone shares to decline.[57]

Monica Beam, a shareholder of MSLO, also brought a derivative suit against Stewart and other directors and officers of the company. It went before the Supreme Court of Delaware in 2004 and was ultimately dismissed.[58]

This is what you posted: "Obviously someone from the FDA (the US govt) tipped off the CEO and he saved a lot more money than she did and she's the one who went to jail."

The implication is that she went to jail, while the CEO either was not charged, nor went to jail.

The CEO was charged. He did go to jail - for 5 years.


Stewart engaged in insider trading. She was convicted. She served a 5-month sentence. She was not singled out. The judge did not make an example out of her. Just anther conviction.


Again - Joe Lewis broke the law, and not just by a little. He knows it. He is unlikely to go to jail - given his age. He will pay a substantial financial penalty that will seem large, but won't impact him or his heirs. And the story ends. But let's not pretend that these crimes are best left unprosecuted.

 

[fortworthspur]

someone from the FDA did tip him off, obviously. how else would he know before the decision was announced? and no, she shouldnt go to jail if her stockbroker, who she pays for advice, calls presumably unsolicited and says "sell". you're supposed to just take a. bath? thats dumb, and a far cry from what our reps and senators do, which is sit in classified meetings and then make stock decisions like buy Gilead stock at the beginning of the pandemic.

 

[ERO]

Really?

You've been sitting on your high horse attacking answers way better than the one you serve up here.

 

[ERO]

Society, and, whomever sold the stocks when they did.

If anyone bought stocks - someone had to sell them. And if the stocks were purchased via insider information, then the sellers were defrauded.

While this is generally correct and I don't defend insider trading), the potential losses for the sellers are likely very minimal in this case.

It's a hell of a lot closer to a victimless crime than knife violence which sparked debate here.

 

[Bluto Blutarsky]

While this is generally correct and I don't defend insider trading), the potential losses for the sellers are likely very minimal in this case.

It's a hell of a lot closer to a victimless crime than knife violence which sparked debate here.

You would have to define "minimal" the profits were in the millions. This is not close to the Martha Stewart case - closer to the CEO's case.

Again - markets only work, if there is an appearance of fairness.

If the public thought insider trading was rampant, and unpunished, the markets would collapse because everyone would be afraid to trade with someone who had inside information. Markets don't collapse because there are rules - pesky though they may be - that create the appearance of fair and balanced trading.

Insider trading is a crime - with far reaching impacts if it goes unpunished.

Joe Lewis created an unfair trading situation - and created unfair profits - and that is against the law. Lewis knew it then, and he knows it now. Hell, he personally loaned the pilots $1M to buy stock on insider info - for just one of the counts in the indictment.

Also:

"As part of the guilty plea of BROAD BAY LTD., LEWIS and BROAD BAY LTD. have agreed LEWIS and his companies will resign and relinquish their control over board of director seats and participation in board of director meetings of any corporation publicly traded in the United States, will cease ownership of certain investments over the five year period of probation, will cooperate with the Government’s ongoing investigation and prosecution, and will pay $50 million in financial penalties, including a $15,586,021 fine and $34,413,979 in forfeiture."

This wasn't a "nothing" series of transactions.

 

[talkshowhost86]

You've been sitting on your high horse attacking answers way better than the one you serve up here.

Apologies I just thought it was very obvious why defrauding people creates victims.

But for clarity...

It can destabilise companies

It can destabilise particular markets

It can destabilise confidence in investments and markets generally

All of which, if not controlled, can lead to collapsing markets, collapsing economies, unemployment etc etc etc.

And if you look at it more in terms if society it helps keep the wealthy wealthy, stopping any opportunity for the redistribution of wealth, which leads to the wealth gap we see which, in turn, leads to environments where some people may feel like they need to, or are able to, commit knife crime.

Suggesting that it's a victimless crime is ludicrous.

 

[Rout-Ledge]

Your opinion is fair enough even though i disagree, however I would rather eradicate knife crime than insider trading.

Prison as a deterrent (as we are talking about eradication) may be far more effective to prevent insider trading than knife crime…

 

[allatsea]

Prison as a deterrent (as we are talking about eradication) may be far more effective to prevent insider trading than knife crime…

What is he 84 or there about ? Can't see him ending up in prison just a very very large fine.

 

[ERO]

Apologies I just thought it was very obvious why defrauding people creates victims.

But for clarity...

It can destabilise companies

It can destabilise particular markets

It can destabilise confidence in investments and markets generally

All of which, if not controlled, can lead to collapsing markets, collapsing economies, unemployment etc etc etc.

And if you look at it more in terms if society it helps keep the wealthy wealthy, stopping any opportunity for the redistribution of wealth, which leads to the wealth gap we see which, in turn, leads to environments where some people may feel like they need to, or are able to, commit knife crime.

Suggesting that it's a victimless crime is ludicrous.

None of which happened of course, yet you make the leap to it causing knife crime. Now that's ludicrous.

 

[Led's Zeppelin]

Insider trading does puzzle me, especially in this modern age of information. So, if you're stock watching and notice some big wig has dumped a ton of stock and you copy them, that's fine. Mention it to anyone else who didn't just happen to see it at the time and that insider trading?

It's such a weird concept, when you consider that it must go on all day, every day - what if you write it on a beer mat and put it under your mate's glass in a pub? Wine bar? What if you tell them using semaphore? Send a coded message using trained animals and the medium of dance?

Very odd. Shifty business.

That’s not insider trading.
Well, not in the UK anyway.

 

[HodisGawd]

Anyway...

Joe Lewis isn't our owner.
This case has nothing to do with us and doesn't impact us in any way.
Our club is run in a sustainable and responsible way.
We'll never be as morally repugnant as Chelsea, City, Newcastle etc.
And we're just not as reliant on our owners in the same way.
So thank you, Lord.

As we were.

 

[Krafty]

Love his plea deal - guilty, but can appeal if he’s given a jail sentence. Would love to hear that appeal!

Insider trading - isn’t that what the stock market is all about? I can see, at some point in the future, a heavily indebted G7 (9? 12? 26?) says sod it, creates a fund to bet on its currency and just screws the market. In some ways it would be better for countries rather than private companies making the billions

In many, many ways it would be much worse!

 

[tototoner]

Just look at all the silverware we won with Joe's dirty money compared to Chelsea and Man City.

Oh wait.....

 

[LondonOllie]

I bet Levy isn’t happy about the person accompanying Lewis wearing a Spurs baseball cap when the club are trying to distance themselves from him.
How does that quote go? “Any publicity is good publicity?”
Hmmm, not sure I agree.

British billionaire Joe Lewis pleads guilty in insider trading case

British billionaire Joe Lewis whose family trust owns the Tottenham Hotspur soccer club pleaded guilty to insider trading and conspiracy charges.

apnews.com

 

[jurgen11]

The mans got Dali and Van Gochs on the wall of his yacht and still needs to cheat the system

 

[newbie]

I hate America

The financial crisis, who actually went to prison that was American?

libor 3 morons had to go to prison because America kicked up a little bit of fuss three idiot, people who were really innocent, one of which literally if he had been assigned the other account he wouldn’t have gone to prison. (It was toss a coin) he went to prison with a young child on the way.. This is coming from someone who thinks the guys a a bit of dick, but he didn’t deserve it.

if goggle, Amazon, Facebook where European they would have fined the shit out of them and probably tried to break them up.

 

[newbie]

The mans got Dali and Van Gochs on the wall of his yacht and still needs to cheat the system

He was giving tips away

yup I think money has lost its value

think of all the good he could have done with the money.

people who pay all the money offshore are scum, they should pay the taxes, the other day, the NHS paid for their birth, proper schooling, police et cetera et cetera et cetera they should still give back the country. This comes from someone who’s more right than left.

 

[SpursSince1980]

The mans got Dali and Van Gochs on the wall of his yacht and still needs to cheat the system

Not to mention is Rodon and Rainwar!

 

[Grey Fox]

Not to mention is Rodon and Rainwar!

Thought Rodon was at Leeds