2. Insider trading applies to brokers, too
A broker who was at Oppenheimer & Co. and then Morgan Stanley, traded on inside information during four years in accounts for himself and 50 brokerage firm customers, the SEC said in a complaint on March 19. The tips originated from a law firm employee and were passed through a middleman who chewed up the Post-it or napkin on which they were written, the complaint said. The SEC now wants back the $5.6 million generated in ill-gotten gains. Our story looks into the matter.