Fergie's Tech Blog

Make Big Profits Illegally (and Maybe Keep Them, Too)

Floyd Norris writes in The New York Times:

There is not much doubt that Oleksandr Dorozhko used inside information when he made a killing trading stock options last fall. Nor is there a dispute that he gained the information illegally. His lawyer, arguing before an appeals court this week, spoke of “a high-tech lock pick.”

But that does not mean that Mr. Dorozhko, a Ukrainian resident, will have to forfeit the $296,456 he earned in one day of trading, beginning just hours before the company in question announced disappointing earnings. The Securities and Exchange Commission blocked him from collecting the profits from his brokerage account, but a federal judge has ordered the S.E.C. to let him have the cash.

posted by Fergie @ 2/15/2008 04:37:00 PM