81. Reprinted By Permission Of Dow Jones WebReprint Service®, 1-800-843-0008 Her name came before prosecutors investigating a genuine crime of insider trading, that of Sam Waksal, head of drugmaker ImClone. http://webreprints.djreprints.com/917660706436.html

Other Journal Sites News Technology Markets ... Contact Us BUSINESS WORLD By HOLMAN W. JENKINS JR. January 28, 2004 Justice Tries to Give Herself a Black Eye Just over a year ago a young man who had come to New York to interview for banking jobs was shot and killed by two muggers on a lower Manhattan street. On the first anniversary, his parents and friends could be seen posting descriptions of the killers and offering a reward for information. Someone the next day went through the street with a bullhorn repeating the offer. Even as this was going on, a few blocks away the official prosecutorial industry was engaged in more agreeable work: A delicious suspect had been dropped in their laps in the person of Martha Stewart; all they had to do was find a crime to charge her with. The fruit of this multimillion dollar effort is on display in a Manhattan courtroom this week and the picture is not one to inspire admiration. Her name came before prosecutors investigating a genuine crime of insider trading, that of Sam Waksal, head of drugmaker ImClone. Ms. Stewart was a friend of Mr. Waksal's; they had the same broker. She dumped her 3,928 shares about the same time he dumped or tried to dump 120,000 shares. Mr. Waksal was certainly guilty of something, whatever you think of the confused and irrational jurisprudence of "insider trading." Ms. Stewart, though, did not need insider information to spur her to sell her stock. She had tried to sell it all to Bristol Myers a few weeks earlier in an oversubscribed tender offer. Now the price was plummeting amid rumors of an impending refusal by the federal government to approve ImClone's new cancer drug. Her broker advised her to sell. They had previously discussed the advisability of selling, and perhaps had even agreed to sell if the price fell below $60, as it was now doing.

82. SEC Speech: Insider Trading - U.S. Perspective (T. Newkirk, M. Robertson) 60. In the United States, insider trading is a crime, punishable by monetary penalties and imprisonment. But it is also a civil offense. http://www.sec.gov/news/speech/speecharchive/1998/spch221.htm

Home Previous Page Speech by SEC Staff: A U.S. Perspective Remarks by Thomas C. Newkirk Associate Director, Division of Enforcement Melissa A. Robertson Senior Counsel, Division of Enforcement 16th International Symposium on Economic Crime Jesus College, Cambridge, England September 19, 1998 I. Introduction More Americans are investing in the stock market than ever before and Americans now have almost twice as much money invested in the stock market as in commercial banks. We believe this reflects Americans' trust and confidence in the American stock markets and that trust stems from a belief that our government relentlessly pursues its mandate to maintain the fairness and integrity of the stock markets. As Chairman Levitt of the United States Securities and Exchange Commission ("SEC" or "Commission") recently observed in an address to the legal and investment community: An essential part of our regulation of the securities market is the vigorous enforcement of our laws against insider trading, an enforcement program, the Chairman noted, that "resonate[s] especially profoundly" among American investors. The enforcement program includes both civil and criminal prosecution of insider trading cases. In the fiscal year ended September 30, 1997, the Commission brought 57 insider trading cases.

83. Boston.com / Business / Insider Trading: It's A Good Thing department at George Mason University, takes Manne s argument a step farther, claiming that insider trading can actually fight corporate crime by serving as a http://www.boston.com/business/articles/2004/03/14/insider_trading_its_a_good_th

Markets Personal finance Technology Companies ... Business Insider trading: It's a good thing By Jascha Hoffman, 3/14/2004 ALREADY FACING UP to 20 years in prison following her conviction last Friday on four charges stemming from a 2001 sale of ImClone stock, Martha Stewart may still have to run another legal gauntlet as the Securities and Exchange Commission prepares a civil charge of insider trading. ADVERTISEMENT But as supporters continue to defend the domestic diva, some economists are going a step farther and defending insider trading itself. Insider trading, defined by the SEC as the use of "material, nonpublic information" in stock sales, was first outlawed in the United States in the wake of the stock market crash of 1929. The rule went unchallenged and unenforced for decades. But soon after the first insider-trading conviction in 1961, economist Henry Manne stunned the corporate law crowd by arguing that insider trading, though harmful to some investors, should be legal nonetheless. First, Manne argued, insider trades would make a company's stock more quickly reflect the company's actual value, making the market more efficient. The canonical example is Texas Gulf Sulphur Co., whose managers gobbled up the company's stock in 1963 and `64 before announcing they had struck ore in Canada, inflating their share price with their own demand and enriching fellow stockholders well before the good news was released.

84. Eurogamer.net - Activision Faces Class Action Lawsuit For Insider Trading claim that false statements were issued by the company to enable insider trading. products to retail which were not finished, naming True crime Streets of LA http://www.eurogamer.net/article.php?article_id=54825

85. RAU Tuisblad - Main Economic crime, such as fraud, insider trading, corruption, insolvent trading and money laundering, is on the increase internationally. http://www.rau.ac.za/news/article_E.asp?AID=102

86. Am I Right - Song Parodies, Insider Trading They went down The feds came around They said she might have made some illegal insider trades But that was a crime, Martha knew when the stocks were gonna http://www.amiright.com/parody/2000s/jimmyeatworld2.shtml

@import url(/amiright_ie.css); Listen to song parodies submitted to this site. amIright is celebrating one year of recorded parodies. Making fun of music. One song at a time... Band Search Misheard Lyrics Archive ... Inappropriate Other Stuff: Messageboard Articles Links About Us ... Song Parodies -> Insider Trading "The Middle" Based on the performance by Jimmy Eat World Insider Trading " Parody by Joe Kaiser Hey, don't work with Kenneth Lay He gives lots of cash to Democrats and Republicans But even then, he works with Andersen. And they're shredding all their documents when the feds are away But that was a crime, Bush and Cheney in the middle of Enron Andersen Andersen has been maligned, All of their executives have resigned resigned Hey, you know they're all the same. Martha Stewart bought some imClone, then sold it off. They went down The feds came around They said she might have made some illegal insider trades But that was a crime, Martha knew when the stocks were gonna slide They run her photo inside Newsweek and Time, and People say she might be doing time It just takes some time, Greenspan gets up in the middle of the slide

87. TomPaine.com - Archives - Small Fry Martha s alleged crime was insider trading?that she sold $228,000 worth of ImClone stock based on an illegal tip from her friend Sam Waksal, the company s http://www.tompaine.com/feature2.cfm/ID/10093

// should be one of: opinion, news, blogs, progressive, pass, home // var prevents rollover actions for the current page. var currentImg='home'; Small Fry Lee Drutman is communications director for Citizen Works Martha, Martha, Martha. So went the news coverage last week, as the headlines told the story of Martha Stewart, homemaker extraordinaire turned corporate crook, convicted of lying and cheating and stealing, prison sentence pending. Reading the headlines, you might be excused for thinking that justice had finally been served, that the problem of corporate crime was now under control, that government prosecutors had sent a message that they were not afraid to go after anybody—even (gasp) Martha Stewart—if that's what it took to send a message to those corporate criminals that they couldn't get away with abusing the little guy. As if. First of all let's get one thing straight. Martha Stewart's crimes were not corporate crimes. She was acting as an individual investor. The fact that she also happened to be the CEO of her own company had nothing to do with what she did. Martha's alleged crime was insider trading—that she sold $228,000 worth of ImClone stock based on an illegal tip from her friend Sam Waksal, the company's CEO (who is now in prison for insider trading). Martha saved herself an estimated $52,000, presumably at the expense of other, less-informed shareholders who didn't know the FDA was about to reject the company's blockbuster cancer drug. But even this was not what got her convicted. Ultimately, her undoing was her crude attempt to cover up evidence that she may have traded based on illegal insider information.

88. CSA/ACVM - CSA News 11/12/03 Illegal insider trading is not a victimless crime,” added Sibold. “Investors who unknowingly trade with people who have inside http://www.csa-acvm.ca/html_CSA/news/insider-trading_report_29.htm

For Immediate Release November 12, 2003 Regulators Release Illegal Insider Trading Report Calgary – The Canadian Securities Administrators (CSA) have received a report from an independent task force which recommends practices to address illegal insider trading in Canadian capital markets.  The recommendations in the report focus on addressing illegal insider trading from three directions: prevention, detection and deterrence.  The report was developed by the Illegal Insider Trading Task Force, which was established in September 2002, and included representatives from the Ontario, Quebec, British Columbia and Alberta securities commissions, the Investment Dealers Association of Canada (IDA), the Bourse de Montréal (Mx) and Market Regulation Services Inc. (RS). “We are pleased to receive these recommendations, which have been tabled with all securities regulators in Canada,” said Stephen Sibold, Chair of the Canadian Securities Administrators and of the Alberta Securities Commission.  “We will be thoughtfully considering these recommendations as we devise an action plan to address the problem of illegal insider trading.” “Illegal insider trading is not a victimless crime,” added Sibold.  “Investors who unknowingly trade with people who have inside information lose because they are in an unequal and unfair relationship. Markets where illegal insider trading occurs can suffer a loss of liquidity if international capital flows avoid them.  By coordinating our efforts, we can bolster the reputation of the Canadian capital market and assure our investors that they are dealing in a fair, level market.”

89. The Salt Lake Tribune -- Odd Twist Flavors Stewart Indictment indictment of Martha Stewart a charge that she committed a crime simply by when she stood up in public last summer and denied engaging in insider trading. http://www.sltrib.com/2003/Jun/06062003/business/63427.asp

FRIDAY June 06, 2003 document.write(Banner("area=slt.business.position0/adsize=banner1",468,60)) Quick Search Mobile Editions Online Poll Front Page Contents ... Religion Odd Twist Flavors Stewart Indictment By Erin McClam The Associated Press NEW YORK Prosecutors tucked a highly unusual twist into their indictment of Martha Stewart a charge that she committed a crime simply by declaring her innocence. Prosecutors say the domestic guru committed securities fraud that is, she deliberately tried to inflate the stock of her own company when she stood up in public last summer and denied engaging in insider trading. "I was a little surprised at that," said Richard Serafini, a former economic crimes prosecutor in New York. "There's kind of a natural tendency when you're confronted with something to deny it. Now they're charging it as market manipulation." Experts said the charge is a high-risk move to convince a jury that Stewart hurt stockholders in Martha Stewart Living Omnimedia by trying to cover up her legal problems. Stewart was indicted Wednesday on five counts including obstruction of justice, conspiracy and lying to investigators tied to her 2001 sale of nearly 4,000 shares of ImClone Systems stock. She pleaded innocent to all charges that could land her in prison for several years. Her former stockbroker, Peter Bacanovic, was also indicted and pleaded innocent.

90. An Adequate Look At Insider Trading the US, the people to whom the benefits of insider trading presently accrue when Prohibition lifted it s the illegality that causes the crime, violence, and http://www.adequacy.org/public/stories/2002.1.10.154733.427.html

Stories Diaries Polls Users Web Adequacy.org Home About Topics Rejects ... Abortions Poll Gov't insider trading? Yes No Don't know Votes: An Adequate Look at Insider Trading Author: perdida Topic: Consumerism Posted: Jan 23, 2002 Comments: Insider trading's been in the news lately. But what exactly is it? Let's look at the current example Enron's directors had been selling off their Enron stock, knowing that the company had grossly inflated estimates of its value. They came out of it with millions in ill-gotten loot Meanwhile, the bosses sent off emails to employees, encouraging them to keep investing their retirement money in Enron stock. Just before Enron's price began to fall in early 2001, the company froze the employees' right to sell their Enron stock. Now that Enron's delisted , thousands have lost their life savings. Insider trading is what turns our fair free-market system into a soulless oligopoly , making us the laughing-stock of communist hippies everywhere. And that

91. JSPL - Working Paper - Insider Trading In The Fiji Islands: A Critical Analysis As has been discussed, the crime of insider trading only applies to insiders who trade in securities that are listed on a securities exchange. http://www.vanuatu.usp.ac.fj/journal_splaw/Working_Papers/Sudhakar1.html

Journal of South Pacific Law - Working Papers Working Paper 3 of Volume 4 2000 Insider Trading in the Fiji Islands: A Critical Analysis By Daveena Sudhakar, Final year LLB Student, USP Introduction Companies can provide a façade behind which fraudulent activities can flourish. The corporate structure is a potential vehicle for fraud; for example, they are used to solicit funds from the public, reap speculative profits by manipulating the value of their issued securities, or to purchase goods and services when they are insolvent. Companies can be used as a smokescreen behind which the dishonest are easily able to shelter. Equally the company can be a victim of fraud. 1 Criminal law can be used to serve a number of purposes in the sphere of commercial and business fraud. It is most frequently employed as an administrative adjunct in the field of business regulation. Great many offences whose object is to protect investors and creditors are effected by regulating transactions in shares. Most of these offences are relatively minor. There are also, however, a number of offences that are aimed at preventing market rigging and other practices that have the effect of creating false markets in shares, and otherwise undermining the confidence that investors are entitled to have in the integrity of the markets which they trade. 2 Principal among these fraudulent white-collar crimes is insider trading. Insider trading was initially the subject of self-regulatory rules only, and was viewed by many that worked in the markets to be a perfectly acceptable financial activity. Gradually the perception of the seriousness of the potential damage inflicted by such conduct began to change, and the need for criminal sanctions to reinforce the codes was accepted as being necessary. 3

92. The Age The record, and a view that insider trading is a victimless crime some have even argued that insider trading improves market efficiency - has led some to http://www.theage.com.au/articles/2003/11/20/1069027255639.html

@import url("http://theage.com.au/css/theage.css"); Soon you will need to register to read this article We will be asking all readers to register for full access to The Age website in the near future. ( Already registered? Or did you register for The Sydney Morning Herald Rugby Heaven , or Realfooty websites? You do not need to register again. LOGIN to continue to your Article Register today to win $30,000 WIN $30,000 Register later and continue to your Article National World Opinion ... f2 member agreement

93. CSA News Release - Regulators Release Illegal Insider Trading Report as we devise an action plan to address the problem of illegal insider trading. Illegal insider trading is not a victimless crime, added Sibold. http://www.osc.gov.on.ca/en/About/News/NewsReleases/2003/nr_20031112_csa-task-fo

CSA / ACVM Canadian Securities Administrators News Release Released: November 12, 2003 Regulators Release Illegal Insider Trading Report Calgary - The Canadian Securities Administrators (CSA) have received a report from an independent task force which recommends practices to address illegal insider trading in Canadian capital markets. The recommendations in the report focus on addressing illegal insider trading from three directions: prevention, detection and deterrence. "We are pleased to receive these recommendations, which have been tabled with all securities regulators in Canada," said Stephen Sibold, Chair of the Canadian Securities Administrators and of the Alberta Securities Commission. "We will be thoughtfully considering these recommendations as we devise an action plan to address the problem of illegal insider trading." "Illegal insider trading is not a victimless crime," added Sibold. "Investors who unknowingly trade with people who have inside information lose because they are in an unequal and unfair relationship. Markets where illegal insider trading occurs can suffer a loss of liquidity if international capital flows avoid them. By coordinating our efforts, we can bolster the reputation of the Canadian capital market and assure our investors that they are dealing in a fair, level market." Key recommendations in the report include: Through information and best practice recommendations, encourage strict adherence to information containment practices by senior management, corporate directors, lawyers and accountants;

94. Inc.com | Polls to the crime. However, THAT is not what she is being charge with. She is now being charged with a coverup/obstruction of justice rather than insider trading. http://www.inc.com/poll/?x=5

95. Leave Sam And Martha Alone scandals involves alleged insider trading by people close to apocalyptic warnings about insider trading, which isnt even defined must conclude that insidertrading law is just http://www.fff.org/comment/com0208g.asp

Send to a friend Printer Friendly PDF Version Leave Sam and Martha Alone by Sheldon Richman August 12, 2002 Some people get satisfaction from seeing a businessman taken handcuffed into custody by FBI agents. Waksal, a 54-year-old immunologist-turned-entrepreneur, fills the bill perfectly. As far as can be determined, no FDA staffer has been arrested. Why should anyone from the FDA be pinched? Because the agency creates the conditions under which such events can occur. But this raises some interesting questions. Anyone who was thinking about buying ImClone stock in December would have known that the Erbitux application was pending with the FDA. Why buy before the official announcement? It is no use pointing out that the company was praising the drug. What company derogates its products? And even if Waksal hinted that the FDA was likely to approve the drug, why did anyone risk big money on a dubious assurance from an interested source? The people buying ImClone stock in late December knowingly made a highly risky investment. We must assume they knew what they were doing. Sheldon Richman is senior fellow at The Future of Freedom Foundation in Fairfax, Va., and editor of

96. Insider Trading Capitalism Frequently Asked Questions insider trading. insider trading. What is "insider" trading? The essential principle of socialism, applied to the physical Isn't "insider" trading an act http://www.capitalism.org/faq/insider_trading.htm

The Capitalism Site Capitalism Frequently Asked Questions Insider Trading What is "insider" trading? The essential principle of socialism, applied to the physical realm, is that property belongs to the "public" regardless of who undertook the effort to create the property. The insider trading laws are its intellectual corollary; if government can take control of the physical creations of your body, it is no great stretch to expect it will take control the intellectual results of your mind, i.e., knowledge. The result is the socialist corruption of the free market known as "insider" trading. The idea that knowledge gained within a company, about that company and its products, belongs to the public, because that company sells its shares to the public. Who does "inside" information belong to? In today's division-of-labor society, it is inevitable that some individuals will discover and act on information before (and better than) others do. Such differences are also the inevitable consequence of the fact that the human mind is individual by nature. Just as there's no such thing as a "collective mind," there is no such thing as "collective information." To grasp information an individual must expend effort; he must either create the information or discover it. After he does this, he may well choose to trade it with others or give it away in some act of charity (just as he may do with his tangible assets). But he should not be obligated (nor compelled by law) to do these things. Morally, he doesn't "owe" his knowledge to anyone. The primary moral obligation rests on others: they should be obliged to keep their hands off such assets and not destroy or steal them (or hire government to do so).

97. CRG -- Getting Used To The Idea Of Double Standards: The Underlying Maxim Is "we not only deeper links between the CIA, Wall Street and the insider trades of 9 His crime conspiracy to launder drug money to arrange the purchase of US weapons http://www.globalresearch.ca/articles/FLO112B.html

 Centre for Research on Globalisation home Profits of Death Insider Trading and 9-11 by Tom Flocco – Edited by Michael C. Ruppert From the Wilderness Publications, 6 December 2001 Centre for Research on Globalisation (CRG), globalresearch.ca , 17 December 2001 On October 9th, FTW broke a story on insider trading connected to the 9-11 attacks on the World Trade Center that sparked worldwide controversy. In that story we reported how the Israeli Herzliyya Institute for Counterterrorism had documented that unknown individuals with accurate foreknowledge of the attacks had purchased an obvious and unusually large number of “put” options on United and American Airlines shortly before the attacks. Additional companies hit hard by the insider trading included Axa Re(insurance) and Munich Re as well as American investment giants Merrill Lynch and Morgan Stanley. Put options are essentially a bet that a stock’s price will fall abruptly. The seller, having entered into a time-specific contract with a buyer, does not need to own the actual shares at the time the contract is purchased. Therefore, if a holder of the put option has a contract to sell a stock such as American Airlines for (e.g.) $100 a share on a Friday and the stock falls to $50 on Wednesday, they can purchase the stock, sell it on Friday and double their money. The person on the other end of the contract (the call) has an obligation to buy the shares at the agreed upon price. The bank handling the transaction as a broker is the only entity knowing the identities of both parties.

98. SEC Adopts Selective Disclosure Rules And Rules Clarifying Insider Trading Laws SEC Adopts Selective Disclosure Rules and Rules Clarifying insider trading Laws. The Securities New insider trading Rules. New Rule http://library.lp.findlaw.com/articles/file/00323/001702/title/Subject/topic/Sec

FindLaw Legal Professionals Students Business ... Lawyer Search State AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY AS GU MP PR VI Select a Practice Area Administrative Law Adoption Agriculture Law Alternative Dispute Resolution Animal Bites Asbestos Mesothelioma Aviation Bankruptcy Law Business Organizations Child Support Civil Rights Constitutional Law Construction Law Consumer Protection Contracts Criminal Law Criminal Law Federal Debtor/Creditor Discrimination Divorce DUI/DWI Education Law Elder Law Eminent Domain Employment Law Employee Employment Law Employer Energy Law Environmental Law Estate Planning Family Law Franchising Gaming Law Government Contracts Insurance Law Intellectual Property Law International Law Internet Cyberspace Labor Law Landlord/Tenant Legal Malpractice Lemon Law Medical Malpractice Military Law Motor Vehicle Accidents Motor Vehicle Defects Native Peoples Law Natural Resources Law Nursing Home Patents Personal Injury Defense Personal Injury Premises Liability Products Liability Law Professional Malpractice Law Real Estate Law Securities Law Sexual Harassment Social Security Disability Taxation Law Toxic Substances Trademarks Traffic Violations Transportation Law Trusts Wills Workers' Compensation Law Wrongful Death FindLaw Library Subject Securities Law: ... Fraud Insider Trading Library Search FAQ Summaries of Law Dictionary SEC Adopts Selective Disclosure Rules and Rules Clarifying Insider Trading Laws The Securities and Exchange Commission (SEC) has adopted Regulation FD (for "fair disclosure") to address the issue of selective disclosure. In addition, the SEC has adopted new rules to clarify certain aspects of existing law relating to insider trading liability. The new rules will take effect as of October 23, 2000.

99. FindLaw > Library > Subjects > Securities Law > Fraud & Insider Trading Forgot Your Password ? click here! New User ? Click Here! FindLaw Library Subjects Securities Law Fraud insider trading. http://library.lp.findlaw.com/securitieslaw_1_289_1.html

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100. THE JOURNAL NEWS: A Gannett Suburban Webpaper It also will include information about Stewart s crimes, past criminal history (she and Exchange Commission has lodged a civil insidertrading charge against http://www.thejournalnews.com/newsroom/030704/a0107martha.html

Search Our Site Enter a search word and click 'go,' or search our headline index by date. Choose Date SPECIAL OFFER!! Subscriber Services Grocery Coupons Personal finance The Journal News is seeking volunteers to serve on a discussion panel that will explore how people save, invest and handle personal finances. If you are interested in participating, please click here to learn more. Westchester Rockland Putnam ... Outdoors All-Stars Columnists National Suburban Golf Business News Markets ... Community Views Columnists Jobs Homes Cars Grocery Coupons ... How to advertise What's next for Stewart Here's a look at some of what Martha Stewart faces after being convicted on four charges in connection with allegations she lied about the circumstances surrounding the sale of her ImClone Systems Inc. shares: Q. What does she have to do next? Q. What is the pre-sentence report? A. Cedarbaum requested the report to help her determine Stewart's sentence. The report will summarize Stewart's business, financial and family matters. It also will include information about Stewart's crimes, past criminal history (she has none), community activities and other matters. Q. Will she be sentenced to prison?

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