***OFF TOPIC***It looks like the SEC is a lot tougher than it used to be on insider trading. Back in the 1960s and 1970s, when someone was charged with insider trading, the person often settled by not admitting he had done anything wrong, but also agreeing that he wouldn't break that particular rule in the future. But since the days of Mike Milliken, people are paying large fines, and even going to jail at times.
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dailynews.yahoo.com
Tuesday June 9 6:30 PM EDT
Benihana founder charged with insider trading
NEW YORK (Reuters) - Rocky H. Aoki, the flamboyant entrepreneur who founded the Benihana Inc. Japanese steakhouse restaurant chain, Tuesday was indicted on charges of insider trading, federal prosecutors said.
Aoki, who relinquished all active management duties May 19 after being told he was the subject of a federal probe, was charged by the U.S. Attorney with insider trading in Spectrum Information Technologies Inc.
Aoki is also accused of paying $10,000 to a consultant working for Spectrum for information that John Sculley, then chairman and chief executive of Apple Computer Inc., was in negotiations to head
Spectrum.
The consultant, Donald Kessler, has pleaded guilty to charges of stock fraud, tax evasion and insider trading and is cooperating in the ongoing investigation.
Aoki made more than $590,000 in 1993 by buying 200,000 shares of Spectrum stock based on the information from Kessler and then selling it after Sculley announced he would run the company, the U.S. Attorney Zachary Carter in Brooklyn said.
Aoki faces up to five years in prison and a $250,000 fine on each count of the indictment. He is scheduled to be arraigned in federal court in Brooklyn Thursday.
Copyright c 1998 Reuters Limited.
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Larry
PS: I am definitely moving to Switzerland, the Bahamas, or somewhere nice, after I make my first $100 million.
Best wishes to rest of you millionaires-to-be. |
