1. They (allegedly) committed securities fraud for a $57,000 profit.
2. It’s not like anyone ever told them TD Ameritrade records its calls.
3. When Alfred picked up the call waiting from Spencer, do you think they kept their chat strictly business or did Alfred also get on his case about any dad-type stuff?
4. “Chew into my profit”

The SEC’s Division of Enforcement alleges that Spencer D. Mindlin obtained non-public details about Goldman’s plans to purchase and sell large amounts of securities underlying the SPDR S&P Retail ETF (XRT). He tipped his father Alfred C. Mindlin, a certified public accountant. Father and son then illegally traded in four different securities underlying the XRT with knowledge of massive, market-moving trades in these securities that Goldman would later execute. The case marks the SEC’s first insider trading enforcement action involving ETFs. “With his father’s helping hand, Spencer Mindlin exploited his inside knowledge of Goldman’s complex hedging strategies to line his own pockets,” said George S. Canellos, Director of the SEC’s New York Regional Office.

According to the SEC’s order, Spencer Mindlin learned on multiple occasions about Goldman’s trading intentions through e-mail communications he received shortly before he and his father placed their trades. In one instance when Alfred Mindlin phoned TD Ameritrade to upgrade the family member’s account to allow for the trading of options, he received a call on another line from Spencer Mindlin while on hold with the TD Ameritrade representative. Because the TD Ameritrade call was recorded, Spencer and Alfred Mindlin’s conversation discussing a trade was captured on tape. In later instances, Spencer Mindlin impersonated his father on at least four calls to TD Ameritrade. On one call, he instructed the firm not to execute a trade too early in the day because this would “chew into my profit – my profit on this trade.” The Mindlins obtained at least $57,000 in illicit profits through their insider trading.

SEC Charges Former Goldman Sachs Employee and His Father with Insider Trading [SEC]

Comments (33)

  1. Posted by pazzo83 | September 21, 2011 at 2:25 PM

    “Chew into my profit” & Wollensky

  2. Posted by Backdoor_Bess | September 21, 2011 at 2:33 PM

    but at least he earned his father's love. and that, my friend, you cannot value.

  3. Posted by Guest | September 21, 2011 at 2:40 PM

    Apparently you can… its $57,000

  4. Posted by HFguy | September 21, 2011 at 2:42 PM

    I see nothing wrong here
    - GS Prop Trader

  5. Posted by AIG Quant via LEH | September 21, 2011 at 2:43 PM

    They should both be thrown in Raj-Raj's jail cell. Raj-Raj can a$$ rape both for a few years as he practices his dominance of the white man's game – up to and including getting caught.

  6. Posted by Guest | September 21, 2011 at 2:45 PM

    Just because you can't value it doesn't mean you can't sell it

    - GS

  7. Posted by Guest | September 21, 2011 at 2:50 PM

    That XRT was one shitty deal

  8. Posted by Guest | September 21, 2011 at 2:51 PM

    Those Mindlin guys are powerhouses.

    - UBS MD

  9. Posted by Guest | September 21, 2011 at 2:55 PM

    If I put someone on "hold," it's muted. That dumbass must have put the call on "conference".

  10. Posted by Guest | September 21, 2011 at 2:56 PM

    Or 10 years in the slammer

  11. Posted by Guy who would know | September 21, 2011 at 2:59 PM

    Raj is definitely a power bottom

  12. Posted by Guest | September 21, 2011 at 3:00 PM

    He sounds like UBS MD material

    -UBS HR

  13. Posted by anon | September 21, 2011 at 3:01 PM

    Except that he didn't try to put them on hold, he tried to click over to call waiting. There is a difference.

  14. Posted by Backdoor_Bess | September 21, 2011 at 3:01 PM

    I am putting you on "mute", jerkwad

  15. Posted by Guest | September 21, 2011 at 3:08 PM

    $57K! Sign me up for any info you need

    -R. Gupta

  16. Posted by Guest | September 21, 2011 at 3:10 PM

    Ungrateful bastard.

    Momma Mindlin

  17. Posted by Guest | September 21, 2011 at 3:23 PM

    Reality hits you hard, bro.

  18. Posted by GS Intern | September 21, 2011 at 3:34 PM

    Looks like frontrunning, not insider trading.

  19. Posted by deezyx | September 21, 2011 at 3:50 PM

    Seriously?!
    The SEC is wasting this kind of time on a 57k trade? Guess its something to do between the skin flicks at work….

  20. Posted by guest | September 21, 2011 at 3:57 PM

    Bro-

    Until you get bernanke and dudley phoning you in the cusips on the bonds they'll be bidding a day or two early, you got a lot to learn about "insider trading"

    -GS prop trader

  21. Posted by Series 7 Exam | September 21, 2011 at 4:08 PM

    Also sometimes referred to as "scalping"

  22. Posted by Chief Running Bear | September 21, 2011 at 4:19 PM

    Examine your motives.

  23. Posted by Vegas Mover | September 21, 2011 at 4:21 PM

    Wonder if these guys are related to the great Ivan 'Doc' Mindlin of the infamous Computer Group.

  24. Posted by Put_Option | September 21, 2011 at 4:26 PM

    Earlier this week:
    "Dad, are you on the line? I have a truly great idea. Front, let me finish, running. My firm, Goldman Sachs. Yes, Dad, THE Goldman Sachs is placing an order. I know cause I'm in trade capture and I overhear trades from the desk. The SEC doesn't pick up on any trade under $50k, so we should be OK!"

    Later this week:
    "Dad, are you in line for group cleaning? I have a truly great idea. Not getting, let me finish, raped in the shower. My owner, Bubba. Yes, Dad, THE Bubba is planning on raping me. I know because I was traded for 4 packs of cigarettes and I overheard the plan from another prisoner. The detention officers really care about the general well-being of inmates, so we should be OK"

  25. Posted by guest | September 21, 2011 at 4:29 PM

    Easy there, Mindlin… so is GS hiring now?

  26. Posted by juniormistmaker | September 21, 2011 at 4:39 PM

    Giving up careers in finance and accounting for $57,000 is the NKI.

    If you're going to throw away your job it should probably be for more then your yearly comp.

  27. Posted by Guest | September 21, 2011 at 4:42 PM

    You said accounting didn't you?

  28. Posted by Guest | September 21, 2011 at 5:15 PM

    10 years in jail would be preferable to a careeer in accounting.

    -Anon Corp Dev Guy

  29. Posted by " the guy " guy | September 21, 2011 at 5:21 PM

    Frontrunning is a violation. Insider yrader sanction is afederal crime

  30. Posted by juniormistmaker | September 21, 2011 at 5:35 PM

    They make that much don't they?

    – Guy who's honestly confused as he values his life and avoids accountants for fear of suicide

  31. Posted by Andy Samberg | September 21, 2011 at 5:42 PM

    "Mort Mort Feingold, Celebrity Accountant, doing taxes for the stars!"

  32. Posted by PermaGuestII | September 21, 2011 at 5:48 PM

    I thought you were still in the AHL

  33. Posted by Guest | September 21, 2011 at 6:07 PM

    MBA > CFA > getting raped by DSK > 10 years in jail > career in accounting > rejected from employment at UBS > actually working at UBS

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