You're right it doesn't happen:
The Securities and Exchange Commission ("Commission") today filed a settled civil injunctive action alleging illegal insider trading by Anthony Pollak, 31, an Israeli citizen and resident who was formerly a financial analyst at Chemical Securities, Inc., Yosi Rubenstein, 44, and Michael Shemmer, 54, formerly partners in Rubenstein-Shemmer Investments, a Tel Aviv money management firm. The Complaint, filed in the United States District Court for the Southern District of New York, alleges that from February through July 1995, Pollak repeatedly misappropriated material nonpublic confidential information to which he had access at Chemical, and tipped Rubenstein and Shemmer to buy the securities of five separate issuers: DSG International Ltd., Truck Components Corp., Playtex Products, Inc., Maxus Energy Corp., and Best Products Company, Inc. The securities were allocated to Rubenstein's and Shemmer's own accounts, to an account in Pollak's name, and to accounts of other customers in the firm. The Complaint alleges that the trades based on Pollak's tips generated profits of $542,177. Without admitting or denying the Commission's allegations, the defendants agreed to a settlement in which they will, among other things, disgorge those profits. |
