An Indulgent Attitude Toward Insider Trading: Massachusetts Does Away With One Of The Few Things Massachusetts Has Going For It

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It used to be that when we wanted to engage in some insider trading and more or less get away with it, we did it in MA. Those days are over. The First Circuit Court of Appeals in Boston has set a dangerous precedent, ruling that 36 months of probation for a hedge fund manger convicted of insider trading was too lenient, saying the crime befits hard time.
GTC Growth Fund manager Michael Tom, sentenced last year to a period of probation for making $750,000 in ill-gotten gains based on information about Citizens Financial Group’s acquisition of Charter One Financial, had his punishment upgraded to 37 months in prison yesterday.
“We agree with the government that the sentence is unreasonable and that it did not give adequate consideration to the seriousness of the offense, the need for general deterrence for white-collar crimes, and the need for some imprisonment,” the court wrote in its ruling. Thank god we still have the Boston Tea-Bagging Party. And the Big Dig, natch, which will survive in perpetuity.
Court Says Hedge Fund Insider Trading Requires Jail Time [FINalternatives]

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