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Insider Trading: It's A Family Affair!

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Just as the Plotking-Pajcin affair seems to be entering it's final stages—most of those involved have pleaded guilty to their involvement with the insider trading scheme—we have a new insider trading scandal to hold our attention. This one involves what one SEC official has termed "a 'family business' built on insider trading." What's more, many of those alleged to have participated work for some of our most prominent law and accounting firms—including Thacher, Proffit & Wood and PricewaterhouseCoopers.
Even more interestingly, the accused family launched a hedge fund--Aragon Partners, LP--to conceal their trading, and specialized in options contracts to hide the fact that much of their trading centered around alleged insider tips from Zvi Rosenthal, a vice president at Taro Pharmaceuticals Industries and father of at least three other accused members of the ring.
The insider trading ring allegedly includes Zvi, three of his sons and various others related through marriage or work.

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