Wednesday, May 16, 2007

Insider Trading

Martha stewart went to jail for insider trading. Christopher Balkenhol pay some penalty for the same crime, but won't go to jail.

Former Oracle Corp. vice president, Balkenhol will pay $198,000 to settle insider-trading charges stemming from trades he made in advance of news about acquisitions by the company, federal regulators said on Monday.

The SEC charged that Mr. Balkenhol learned about the acquisitions of Siebel Systems Inc. and Retek Inc. from his wife, who worked as the lead executive assistant to Oracle Chief Executive Larry Ellison and two co-presidents. His wife had access to their schedules and was aware of significant merger-related meetings, the SEC said.

If Martha was quiet when FBI talked to her, she could have avoided the prison term. She was punished mainly because of perjury. Insider trading alone didn't put her in trouble. Balkenhol is lucky to get away with just the penalty.

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