crime does pay
Thursday, April 17th, 2008Why am I only finding out about this now (also reported by wired)?
Oleksandr Dorozhko hacked a system containing information on IMS health that would negatively affect their stock price. (Or, possibly, someone else hacked the system and gave him the information). He invested in puts and netted himself about $300,000 in one day. The SEC noticed and tried to block it, but the court has ruled that a hacker is not an insider, and therefore insider trading does not apply. Mr. Dorozhko gets to keep every cent of his admittedly ill-gotten gains.
