SEC Investigating Insider Trading of Apple Stock

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com/2009/08/31/sec-investigating-insider-trading-of-apple-stock/)

The Huffington Post reports (http://www.huffingtonpost.com/dan-dorfman/sec-investigating-apple-t_b_272159.html) that the U.S. Securities and Exchange Commission (SEC) is investigating possible illegal insider trading of shares of Apple stock. Insider trading, or the buying and selling of stock by those with access to information not held by the general public, is closely regulated by the SEC.

Notably, the SEC is requesting information from brokers on trades made during four separate time periods, suggesting that there may be multiple suspected violations of insider trading regulations. Wall Street sources point to three probable areas of interest for the SEC:--Whether anyone got an illegal lead on precisely how sales were faring on key items in Apple's highly successful Ipod product line.

--Whether anyone was given a precise insight into the health of the company's co-founder and CEO, Steve Jobs, a cancer survivor who took a six-month leave of absence last January and then received a liver transplant. Subsequent questions about the viability of his health then led to a great deal of volatility in Apple's shares.

--Whether anyone had exact knowledge of when specific releases would be made by the company with regard to Jobs' health or Ipod sales and pretty much of an awareness, as well, as to what those announcements would say.The report cites one trader who noted that "it almost looked at times like the buyers and sellers were working at the company." Consequently, the SEC is looking to obtain information on the names of brokerage clients who traded in Apple stock during the time periods in question and who may have had access to non-public information about the company.

Article Link: SEC Investigating Insider Trading of Apple Stock (http://www.macrumors.com/2009/08/31/sec-investigating-insider-trading-of-apple-stock/)

[amac4me]

hmmm, let's see where this one goes :eek:

[jazman]

PSSSSHH... Good Luck. :)

[Rocketman]

MacRumors has more accurate than not "predictions" about pending Apple announcements, the content of those announcements, and I dare say, far more than 98% of Apple employees themselves receive.

If I were an Apple employee I would not trade in Apple stock with any frequency and make sure my trades were either scheduled or guided by buy and sell stops, so the trade itself does not have suspect "timing".

But I can say from first hand experience that trading AAPL stock largely based on MacRumors articles is practical and profitable.

This year we also have an overlay of the market itself crashing bringing down even good company stock prices. That was an unprecedented opportunity to buy good companies at low prices independent of all other factors, and AAPL is an above average stock to begin with.

SEC should leave AAPL alone unless they actually have evidence land on their doorstep of illegal acts, and Obama should stop annoying the CIA, who let's face it, works entirely for, and at the pleasure of, the President! Whichever President!

I bet my good suggestions are ignored and this administration does the wrong thing both times.

Rocketman

[miketcool]

Here's to hoping that Apple will be upfront and honest with these allegations by the SEC. Apple plays their cards mostly by this massive image that they have created. I would hate to see them tarnish it over petty financial schemes and backroom trading. I really don't need to see a Michael Moore film that targets an evil Apple Corporation...

[amoda]

Again? Sigh

[zombitronic]

Here's to hoping that Apple will be upfront and honest with these allegations by the SEC. Apple plays their cards mostly by this massive image that they have created. I would hate to see them tarnish it over petty financial schemes and backroom trading. I really don't need to see a Michael Moore film that targets an evil Apple Corporation...

From what I understand, the SEC is not targeting Apple directly, but brokers who trade AAPL.

[Full of Win]

I think it is someone who thinks they are better than everyone else and should benefit from their position. You know, the type of person who can "organ shop" small southern states by flying in you their own jet.

[designgeek]

(gets on cell phone) SHRED EVERYTHING (/George Bluth quote)

[themoonisdown09]

I just wish I had bought some Apple stock in January when it was at around $70 a share. Now it's up to over $160 a share.

[iAlan]

If traders have engaged in insider trading then they should be held accountable for any breach. I'd hope there is evidence to warrant the investigations. The 3 possible reasons cited by 'Wall Street sources' don't sound far fetched at all, and are situations that would allow an insider trader to benefit.

That being said, and this is not directed at any previous poster, I do not think we should take shots at any current Apple executive if there is no allegation against them or at Apple as a whole.

We hear about this because we all follow Apple closely, but I am sure there are incidences involving other company stock. We just don't follow those companies closely. This is in no way defending Apple, but until the evidence proves Apple or its executives were involved I don't feel it appropriate to speculate. If they are guilty, then through the book at them, but give the SEC their due diligence to determine who is at fault.

And my 2 cents have just expired...

[jaw04005]

You don't need insider sources when you have Macrumors. A regular Joe could just check out Macrumors each day to get the latest gossip on Apple, and make stock trades accordingly.

That's what I do. :D I'm fairly convinced only a select handful of executives at Apple could provide any important insider information anyway. Apple does a good job of keeping everyone else in the dark including employees (Team A doesn't know what Team B is doing, etc).

We generally have better information than your average analyst or stock broker could ever get (product introductions, Jobs' health rumors, product development, WWDC/Macworld announcements, etc).

[Mattie Num Nums]

It was kind of strange when Openheimer sold all of his stock a few years back when it was like 200 a share.

[SilentCrs]

If I were an Apple employee I would not trade in Apple stock with any frequency and make sure my trades were either scheduled or guided by buy and sell stops, so the trade itself does not have suspect "timing".

That's not the issue here. They're going after brokerages who bought/sold APPL with unusual timing. That means someone (or some people) within the company were leaking information to the brokerages about upcoming products/Jobs' health, etc.

To be honest, that's where the real damage lies anyway. Individual employees at companies the SEC investigates are self-contained problems. When the info gets out to the brokerages you start screwing around with billions of dollars in people's retirement funds.

[miknos]

I think it is someone who thinks they are better than everyone else and should benefit from their position. You know, the type of person who can "organ shop" small southern states by flying in you their own jet.

I believe Steve Jobs should be at higher priority not because he is richer than most, but because he did (and will do) more contributions to this world than many in that list.

I love most of the Apple products and I believe the company will go down under another CEO.

[SFStateStudent]

Who needs brokers? Buy low; sell high....:eek:

[jrichard012]

MacRumors has more accurate than not "predictions" about pending Apple announcements, the content of those announcements, and I dare say, far more than 98% of Apple employees themselves receive.

If I were an Apple employee I would not trade in Apple stock with any frequency and make sure my trades were either scheduled or guided by buy and sell stops, so the trade itself does not have suspect "timing".

But I can say from first hand experience that trading AAPL stock largely based on MacRumors articles is practical and profitable.

This year we also have an overlay of the market itself crashing bringing down even good company stock prices. That was an unprecedented opportunity to buy good companies at low prices independent of all other factors, and AAPL is an above average stock to begin with.

SEC should leave AAPL alone unless they actually have evidence land on their doorstep of illegal acts, and Obama should stop annoying the CIA, who let's face it, works entirely for, and at the pleasure of, the President! Whichever President!

I bet my good suggestions are ignored and this administration does the wrong thing both times.

Rocketman

Well thought out and logical. Lots of common sense too. As far as the Huffington Post is concerned, they have a history of bias against just about anything concerning big business.

[Rocketman]

When the info gets out to the brokerages you start screwing around with billions of dollars in people's retirement funds.

Maybe for a few hours or days at a time, but retirement funds do not trade daily or monthly. They are buy and hold. The arbitrage and damping offered by a large well traded stock with large daily volume makes this entire issue limited to "illegal profits by insiders", not "influencing the overall market" in the stock. Trades on the edges, not trades that are "market moving". That is not being alleged.

Rocketman

[Small White Car]

SEC should leave AAPL alone

Well gee, then it's a good thing the the article says they're investigating the brokers, isn't it?

[jaw04005]

I think it is someone who thinks they are better than everyone else and should benefit from their position. You know, the type of person who can "organ shop" small southern states by flying in you their own jet.

First of all, Tennessee is not a small state. It's ranked #16 in the United States in terms of population.

If you were facing the kind of prognosis Jobs was, and could afford to cherry pick the best hospital to fit your needs, you would too. You can't blame the guy.

[bradl]

It was kind of strange when Openheimer sold all of his stock a few years back when it was like 200 a share.

:confused:

Skeletor (http://en.wikipedia.org/wiki/Alan_Oppenheimer) owned stock in Apple?

He could have gave Snake Mountain a helluva home makeover, and kick He-Man's arse all over Eternia! :D

BL.

[Small White Car]

I think it is someone who thinks they are better than everyone else and should benefit from their position. You know, the type of person who can "organ shop" small southern states by flying in you their own jet.

I'm a little confused.

Your avatar make it look like you don't like socialism, but this post is the most socialist thing I've read in quite some time.

I'm just trying to figure out if your avatar or your post is the serious one. Which one is the joke? I can't tell.

[gnasher729]

I believe Steve Jobs should be at higher priority not because he is richer than most, but because he did (and will do) more contributions to this world than many in that list.

I believe Steve Jobs should get no higher priority at a hospital than anyone else, and according to the medical staff responsible he didn't.

[xIGmanIx]

MacRumors has more accurate than not "predictions" about pending Apple announcements, the content of those announcements, and I dare say, far more than 98% of Apple employees themselves receive.

If I were an Apple employee I would not trade in Apple stock with any frequency and make sure my trades were either scheduled or guided by buy and sell stops, so the trade itself does not have suspect "timing".

But I can say from first hand experience that trading AAPL stock largely based on MacRumors articles is practical and profitable.

This year we also have an overlay of the market itself crashing bringing down even good company stock prices. That was an unprecedented opportunity to buy good companies at low prices independent of all other factors, and AAPL is an above average stock to begin with.

SEC should leave AAPL alone unless they actually have evidence land on their doorstep of illegal acts, and Obama should stop annoying the CIA, who let's face it, works entirely for, and at the pleasure of, the President! Whichever President!

I bet my good suggestions are ignored and this administration does the wrong thing both times.

Rocketman

sound logic however, where does Macrumors get their information from? that is the probably the inside source, however never fully identified. this will probably be nothing in the end, however at the end of the day its Apple and their employees responsibilities to prevent non-public information from being obtained

[Mattie Num Nums]

:confused:

Skeletor (http://en.wikipedia.org/wiki/Alan_Oppenheimer) owned stock in Apple?

He could have gave Snake Mountain a helluva home makeover, and kick He-Man's arse all over Eternia! :D

BL.

http://www.apple.com/pr/bios/oppenheimer.html

[funkdoctor]

I'm a little confused.

Your avatar make it look like you don't like socialism, but this post is the most socialist thing I've read in quite some time.

I'm just trying to figure out if your avatar or your post is the serious one. Which one is the joke? I can't tell.

I also would like to know the answer to this one...

[twoodcc]

i personally doubt that they will find anything. we'll see though

[Mattie Num Nums]

I believe Steve Jobs should be at higher priority not because he is richer than most, but because he did (and will do) more contributions to this world than many in that list.

I love most of the Apple products and I believe the company will go down under another CEO.

So Steve deserves an organ over a 15 year old kid who's been waiting years longer because he contributes more to society?

Wrong

[Bjohnson33]

Again? Sigh

Seems like a sign of being a successful company - increased scrutiny and criticism!

[Swift]

That's not the issue here. They're going after brokerages who bought/sold APPL with unusual timing. That means someone (or some people) within the company were leaking information to the brokerages about upcoming products/Jobs' health, etc.

To be honest, that's where the real damage lies anyway. Individual employees at companies the SEC investigates are self-contained problems. When the info gets out to the brokerages you start screwing around with billions of dollars in people's retirement funds.

Can you say, "Jim Cramer"? I knew that you could.

[Swift]

So Steve deserves an organ over a 15 year old kid who's been waiting years longer because he contributes more to society?

Wrong

What are you, a socialist????

[Rot'nApple]

I'm a little confused.

Your avatar make it look like you don't like socialism, but this post is the most socialist thing I've read in quite some time.

I'm just trying to figure out if your avatar or your post is the serious one. Which one is the joke? I can't tell.

I don't see anything in his post about a wealthy individual with their own private jet and money to live out of state near the medical facility of their choice that has a stellar reputation for its work in organ transplant relates to it being "socialist". Maybe Ted Kennedy-esk... as in the tragic death of John Kennedy, Jr., his wife and her sister in that aircraft accident and that when the bodies were found....

"John F. Kennedy Jr.'s uncle, Sen. Edward Kennedy, was taken to the recovery scene at sea. He left the Kennedy family compound in Hyannisport, on Cape Cod, aboard a Coast Guard helicopter that took him to Martha's Vineyard. The senator completed the journey aboard a Coast Guard vessel."
(http://www.cnn.com/US/9907/21/kennedy.plane.06/)

How many here on this board call where they live, a "compound"? But I digress...

You think you or I would have such use of government aircraft and vessel if we lost our family members in a similar tragic aircraft accident at sea? Plus I recall that when their ashes were scattered from the destroyer USS Briscoe off the coast of Martha's Vineyard, a big uproar was heard from those families that have been waiting and waiting for their loved ones who served in the navy and were waiting to be honored by having their ashes scattered at their burial at sea from the USS Briscoe, but were quickly bypassed by the Kennedy clan! The usual privilege crowd.

I think the person contained in his avatar answers your question of which one is the joke! Although, I disagree with that avatar. I think the word "Socialist" should be replaced with Fascist!

As defined here, it's a perfect fit regarding what these dolts in Washington have been doing!

"A political regime, usually totalitarian, ideologically based on centralized government, government control of business, repression of criticism or opposition, a leader cult and exalting the state and/or religion above individual rights." (http://en.wiktionary.org/wiki/fascism)

or as defined here...

"a governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism." (http://dictionary.reference.com/browse/fascism)

That's how I see it, but regarding the article at hand...

Regarding insider trading, if true, perp walk time!

[TheMadCow]

Yeah, this HAS to be true, because HuffPo is the last bastion of responsible reporting.

Tools.

[SeattleMoose]

1) Hank Paulson, ex CEO of Goldman Sachs - becomes Secretary of the Treasurey under Bush
2) In late 2008 asks for $700B "TARP" money and requests that no questions be asked about how the money is spent, that he be free from any prosecution, and that congress/senate approve TARP IMMEDIATELY...or the world as we know it will be destroyed!!!!
3) He gets his $700B to bail out AIG, Goldman Sachs, and other financial scumbag companies that are "too big to fail"....
4) Nobody knows how or where the first $350B went
5) Paulson disappears...mission accomplished
6) Summer of 2009 - during worst recession in decades Goldman Sachs posts record earnings and pays out bonuses to over 20,000 employees with the an "average" payout of $600K per each of those 20,000.
7) SEC does nothing and Paulson's obvious conflict of interest in raiding the U.S. Treasurey to help his cronies goes uncontested

And now, that glorious watchdog group, the SEC, is investigating "insider trading" of Apple stock?

Way to go SEC...way to protect America from corporate crooks.....:mad:

[Mattie Num Nums]

What are you, a socialist????

Far from it.

[kupua]

OMG this is so stupid. If there is any real concern for insider trading... why don't they look at AIG.

That sucker goes up like gang busters for no reason and after a few days, drops like a cement anchor... :rolleyes:

[John C. Garand]

Yeah, this HAS to be true, because HuffPo is the last bastion of responsible reporting.

Tools.

Aw, man! MadCow, you totally stole my thunder. I was going to post something like "The Huffington Post? It MUST be true!"

There's no point now. *sniffle* I hope your Snow Leopard doesn't install properly! ;)

[*LTD*]

What are you, a socialist????

Healthcare.

Nationalize it, already! Geez . . .

[kernkraft]

I'm a little confused.

Your avatar make it look like you don't like socialism, but this post is the most socialist thing I've read in quite some time.

I'm just trying to figure out if your avatar or your post is the serious one. Which one is the joke? I can't tell.

Both.

This is an IT blog, not a political site. By the way, Obama is not a socialist and not a fascist. But he is using several Apple products. He is a Mac, if you like. Get used to it!

[bruinsrme]

So Steve deserves an organ over a 15 year old kid who's been waiting years longer because he contributes more to society?

Wrong

Money in the form of donations can make those in a certain position see otherwise

[*LTD*]

I get the feeling that a lot of people throw around the term "socialism" or "socialist" without actually knowing what it means. There really isn't a single overarching form of socialism, either. It's not an all-or-nothing, black and white economic system. There are Social Democrats, Libertarian Socialists, etc. There are the kinds, for example, that believe in selective nationalization of specific industries (such as healthcare), while maintaining a healthy level of privatization.

People hear Socialism is "bad", then some part-time armchair scholar who sold out long ago (i.e., Zbigniew Brzezinski) is interviewed by CNN, and tells people it's un-American or some such nonsense, and then we get this twisted, blind, pseudo-acceptable kind of modern McCarthyism.

[bradl]

http://www.apple.com/pr/bios/oppenheimer.html

Ahh.. damn.

I was hoping it was Skeletor! :D

BL.

[zRedbullz]

It is hard to bring someone accused of insider trading to justice. It requires a wealth of evidence to suspect irregular buying & selling patterns based on inside information.

They say in the world of trading, you have to be a total moron to get done for insider trading. It is not at all common, sadly, and many do get away with it. The trick is not to buy at a ''right angle'', but over a period of time.

I'd be surprised if SEC can bring charges. Apple products are the subject of so much speculation, in both industry & media.

[Mr. Gates]

I'm thinking the people who read MacRumors and own Apple stock are to blame. Ha :D

[MorphingDragon]

Mind my ignorance but how is this illegal trading of stocks?

[SPUY767]

Apple's stock price wasn't hard to anticipate. I've bought and sold Apple several times, each time netting myself anwyhere from a 150-200% return.

[mccldwll]

I think the word "Socialist" should be replaced with Fascist!


Sheeesh. What an appropriate ID. Why not just go polish your gun some more.

[doctor-don]

All a person needs to do is R E A D. Many sites report on rumors about Apple's new products. If I had money to invest, I would buy - WOULD HAVE BOUGHT - Apple stock because it was down below $90 and is now $170. $78.20 on January 20, 2009 is the lowest in the past year (15 months).

Buy low - sell high!:D

[doctor-don]

I don't see anything in his post about a wealthy individual with their own private jet and money to live out of state near the medical facility of their choice that has a stellar reputation for its work in organ transplant relates to it being "socialist". Maybe Ted Kennedy-esk... as in the tragic death of John Kennedy, Jr., his wife and her sister in that aircraft accident and that when the bodies were found....

"John F. Kennedy Jr.'s uncle, Sen. Edward Kennedy, was taken to the recovery scene at sea. He left the Kennedy family compound in Hyannisport, on Cape Cod, aboard a Coast Guard helicopter that took him to Martha's Vineyard. The senator completed the journey aboard a Coast Guard vessel."
(http://www.cnn.com/US/9907/21/kennedy.plane.06/)

How many here on this board call where they live, a "compound"? But I digress...

You think you or I would have such use of government aircraft and vessel if we lost our family members in a similar tragic aircraft accident at sea? Plus I recall that when their ashes were scattered from the destroyer USS Briscoe off the coast of Martha's Vineyard, a big uproar was heard from those families that have been waiting and waiting for their loved ones who served in the navy and were waiting to be honored by having their ashes scattered at their burial at sea from the USS Briscoe, but were quickly bypassed by the Kennedy clan! The usual privilege crowd.

I think the person contained in his avatar answers your question of which one is the joke! Although, I disagree with that avatar. I think the word "Socialist" should be replaced with Fascist!

As defined here, it's a perfect fit regarding what these dolts in Washington have been doing!

"A political regime, usually totalitarian, ideologically based on centralized government, government control of business, repression of criticism or opposition, a leader cult and exalting the state and/or religion above individual rights." (http://en.wiktionary.org/wiki/fascism)

or as defined here...

"a governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism." (http://dictionary.reference.com/browse/fascism)

That's how I see it, but regarding the article at hand...

Regarding insider trading, if true, perp walk time!

Jealous of someone with wealth and power?

My granddaddy used to say, "If you're so smart, why ain't you rich?"

[bretm]

(gets on cell phone) SHRED EVERYTHING (/George Bluth quote)

Awesome. Best show ever.

[bretm]

What does the South Eastern Conference have to do with any of this?

[troy.w.banther]

It's amazing to me how some people even remember to breathe. Much less to know what the definitions of socialist and fascist are.

I've come to the conclusion ... I see DUMB people. Yeah, you! The one with a beer cans at your desktop and all around your keyboard.

That said, I've seen the federal government waste money on toilet seats and hammers. It's no surprise the SEC is going after a successful company on a rumor.