A small group of people have been arrested and charged with insider trading, some of which is alleged to have happened in Florida. The seven people have been indicted on charges stemming from activity in Florida and four other states; six have already pled guilty to the charges.
In total, the individuals are accused of making $11 million in profit from their fraudulent behavior. It is still unclear how this has affected Florida investors, but more will likely be discovered as the only individual who has not admitted his guilt is brought to trial. With this multimillion-dollar scheme in place, however, it would not be surprising if this greatly affected people in the Miami area.
This blog has talked about the important trust that Florida individuals give their stockbrokers and bankers. Because these individuals are dealing with such important assets, it is vital that they are acting honestly and truthfully with Floridians’ money. When they don’t, they not only have broken the trust of their clients, but it is also quite clear that their actions risk their clients’ financial security.
In this case, a 31-year-old former banker stands accused of insider trading after he apparently used information about planned mergers to make some profitable stock purchases. Six others had also been charged, including the banker’s stockbroker friend and the stockbroker’s girlfriend.
These are more than just crimes of greed; rather, they are crimes that capitalize on others’ trust and end up leaving individuals in financial ruins. Stop by our website to learn more about the multiple violations of securities law that we deal with in our practice every day.
Source: The Miami Herald, “Ex-Wells Fargo banker charged with insider trading,” Dec. 13, 2012