A former corporate lawyer, an ex-trader and an alleged middleman have agreed to pay more than $32 million to settle an SEC lawsuit over a insider-trading scheme in which they allegedly shared tips about proposed mergers.
NEW YORK (Reuters) - The trial of former Goldman Sachs bond trader Fabrice "Fabulous Fab" Tourre next week gives the U.S. Securities and Exchange Commission an opportunity to prove that it can win big cases tied to the financial crisis. The SEC claimed an 85 percent success rate in all trials last year, but its critics have said that, when it comes to the financial crisis, its win rate has been dismal.
A stockbroker and a clerk from a top corporate law firm were charged with insider trading in a scheme that involved a middleman swallowing illicit tips that were written on Post-It notes, the Securities and Exchange Commission said in a release.
Hopefully the $155 million purchase of Picasso's "Le Reve" by Steve Cohen coupled with his splurge on a $60 million East Hamptons pad comes with a 30 full day money back guarantee, because very soon he may have more practical and immediate uses for the money. Because if the SAC head was hoping that the recent $602 million settlement his firm had reached with the SEC was enough to put all his troubles behind him, he may want to think twice.