Insider-trading indictment involving Bloomberg News stories before their publishing

I just wonder how a financial reporter can be in such a close relationship with an investor for such a long time period. More puzzling is Bloomberg is not concerned, or as reported. I do not know the whole story. But a lot of funny guys out there. Billy Hwang, Greensill Bank, Sanjeev Gupta and a lot more.
 
guru said:
The feds allege that Peltz used disposable “burner” phones and encrypted apps to communicate with a journalist, and that the reporter provided “material nonpublic information about forthcoming articles” which Peltz used to trade in the market “just prior to publication of an article about each company written by the reporter.” The indictment describes “numerous contacts” between Peltz and a reporter, including at least one in-person meeting
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RedSun said:
I just wonder how a financial reporter can be in such a close relationship with an investor for such a long time period. More puzzling is Bloomberg is not concerned, or as reported. I do not know the whole story. But a lot of funny guys out there. Billy Hwang, Greensill Bank, Sanjeev Gupta and a lot more.
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When I worked for a large bank, they emphasized employees and the bank might be liable for an employee or contractor passing material, nonpublic information to anyone that wasn't supposed to know it. So the reporter and Bloomberg might be in trouble too.
https://www.americanbar.org/groups/business_law/publications/blt/2011/08/01_johnson/
The law, section 20A of the Securities Exchange Act of 1934, provides that a tipper is jointly and severally liable with his or her tippees (both direct and indirect) for the ill-gotten gains (or the losses avoided) those tippees obtained as a result of the tip, plus interest. The tipper also may face a monetary penalty of up to three times the amount of those ill-gotten gains or losses avoided, although most cases settle for a one-time penalty equal to the disgorgement amount. Taken to an extreme, the tipper need not know anything about the trades themselves or have any voice in the dollar amounts at issue--the tipper can be liable for dollar amounts in the thousands, millions, or even more for trading profits or losses avoided that he or she never received, shared, or even knew about.
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ph1l said:
When I worked for a large bank, they emphasized employees and the bank might be liable for an employee or contractor passing material, nonpublic information to anyone that wasn't supposed to know it. So the reporter and Bloomberg might be in trouble too.
https://www.americanbar.org/groups/business_law/publications/blt/2011/08/01_johnson/
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Yes. If a Bloomberg news reporter has been involved in anything like this, Bloomberg should have done its own investigation and report the results. There may be nothing wrong with this. But they should withhold its highest integrity and build the trust with viewers. All financial reporters from large news outlets should know that.
 
My understanding is that they are doing exactly that right now. But it appears weird that a journalist of his stature would wine and dine with a dubious investor/trader.

RedSun said:
Yes. If a Bloomberg news reporter has been involved in anything like this, Bloomberg should have done its own investigation and report the results. There may be nothing wrong with this. But they should withhold its highest integrity and build the trust with viewers. All financial reporters from large news outlets should know that.
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DiceAreCast said:
Have you ever thought of the real meaning of this principle? Innocent until proven guilty? What a horrific statement. This must logically also apply to a murderer who has been caught on tape during the act and until the moment he is convicted of murder he is essentially innocent. How wrong is that? Isn't it better to change that to "not convicted until proven guilty". Cohen is without the shred of a doubt guilty as fuck, he just paid whatever was asked to avoid a trial because he would have otherwise been convicted. In what other jurisdiction can one buy himself out of a verdict than in good ol America? How dare the prosecution and DA betray the people and country by letting criminals off the hook just to build a quick CV?
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So far this is the best we got as far as legal goes. Yes, in your example it is obvious, but in most cases it is not, and everyone deserves their day in court. Otherwise what is the alternative? Drown the witch, and if she drowns she is innocent and if not she is a witch.
 
I wonder what would happen if instead of leaking the news to Bloomberg, he instead anonymously posted it online to forums like 4chan and reddit. Then only enter his position minutes after posting the information. Within a few hours news sites would probably pick up the info and have the same impact as leaking to Bloomberg, but he would have deniability and say that he has an "AI" that scans social media for information, and he only traded on public info.
 
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