The Securities and Exchange Commission (SEC) has put the dime on another alleged form of insider trading. '
The source is a powerful wife. The husband hears nonpublic information about what could affect the price of the stock. That husband, although told by the wife not to trade on it, allegedly does. Two of those husbands recently settled with the SEC but did not admit guilt. They are William Marovitz, husband of former Playboy Chief Executive Officer Christie Hefner and Ching Hwa Chen, husband of a senior tax director at Informatica. Here is the coverage by Bloomberg.
This kind of alleged insider trading might have shocked us pre-Galleon hedge fund trial and conviction. That, of course, was of great public and legal interest because in the net was found former McKinsey head Rajat Gupta. At his own trial he was convicted and his appeal for a new trial or to have the conviction overturned has been denied. Soon this pillar of the establishment will begin serving a two-year sentence.