Unformatted text preview: trading stock based upon that information. The reason insider trading is fraud is the person is trying to gain something of value and neglects the legality of the situation. Martha Stewart was accused of insider trading, by receiving a tip by CEO Sam Waksal. The stock that in question was ImClone, and sale of the stock rose sharply and Martha tried to sell her stock. One thing that was discussed was the fact that just two months earlier Martha tried to sell all of her stock then. The government could not charge Martha Stewart with insider trading, based on a sheer lack of evidence; they decided to go after her for other alleged misdeeds. This is where the tipper and the tippee concept came in it still offered a way to convict the two. Martha Stewart was found guilty of obstructing justice and lying to investigators about the information about the stock trades....
View Full Document
This note was uploaded on 10/24/2011 for the course LAW BB3210 taught by Professor Profsantiago during the Spring '11 term at Columbia Southern University, Orange Beach.
- Spring '11