Phase 3 Group Project James Filing Colorado Technical University Online Victor Villareal MGM110-0901A-20 January 29,2009 Real life instances of insider trading Ramesh Chakrapani, a employee at Blackstone’s financial group was charged by the SEC (Securities & Exchange Commission) with insider trading with connection with the 2006 acquisition of the supermarket chain Albertsons. He allegedly helped his friends and parents earn $3.6 million dollars by giving information he was in charge of while working at Blackstone’s London office. He was the company’s 30 year old vice president at the time and his boss, Steve Schwarzman, said he was "both saddened and outraged" by the news. (Sender, 2009) In his letter to investors, Mr Schwarzman added that he personally made it "an absolute priority to speak to each new class of analysts and associates about the prime importance of protecting confidential information and guarding against insider trading". (Sender, 2009) Also the SEC charged Dallas entrepreneur Mark Cuban with insider trading due for selling 600, 000 shares of his stock in Mamma.com after learning about a stock offering. After receiving the information he called his broker and told him to sell all of his shares in the company. When the offering was publicly announced, Mamma.com's stock price opened at $11.89, down $1.215 or 9.3 percent from the prior day's closing price of $13.105. According to the complaint, Cuban avoided losses in excess of $750,000 by selling his stock prior to the public announcement of the offering. Scott W. Friestad, Deputy Director of the SEC's Division of Enforcement, said, "As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential. Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares. It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the...