Just recently a doctor with a graduate degree from Yale named Joseph F. Skowron was sentenced to five years in prison for insider trading. He was said to have accumulated majority of his wealth over the years illegally. Insider trading is common in most nations and it has become difficult to stop this problem globally. Insider trading is not illegal in all parts of the world, In the U.S. it must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. Mr. Skowron fell victim to our government’s crackdown on insider trading in corporate America. Legal trades by insiders are common, as employees of publicly traded corporations often have stock or stock options. In the U.S. in 2001 a law was created that stated for insider trading to occur when people knew about it publicly. These trades are known publicly in the United States through Securities and Exchange Commission filings. Insider trading laws are constantly being broken due to bribery and embezzlement. Liability for insider trading violations cannot be avoided, as long as the person receiving the information knew or should have known that the information was company property they are still considered to be guilty. Insider trading is not always as easy to get away with as people think. The more that insider trading tends to happen the higher the cost of capital for securities issuers will be raised. Insider trading is viewed by most regulators as not being too profitable in the long run, and most court decisions usually go against it. This case was a prime example of the negative effects that insider trading can have on a society.
http://dealbook.nytimes.com/2011/11/18/hedge-fund-manager-is-sentenced-to-5-years/?scp=7&sq=global%20crime&st=cse
