Explanation of Collins' Transgressions - Jill Schlesinger

00:06:58

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Chills less juror from Jill on money Saturdays on WB and joining us live this morning or on planning a lesson in insider trading 101 jail. And it take this through this year perspective. Within your financial background adds is to what you heard yesterday about what Collins is accused of. You know it's and it's wires hit we're like light you know I called a couple of securities attorneys kind LA New York. And what I did it could lactic insider to and here's why. You know all time it's murky as to you know who told why where and who acted on it we didn't putt. In became insider trading at all predicated on the fact that you can have a did detonate something that's not in the public domain. For a public company. Okay and even you did so just pretend that Collins didn't call his son instead dumped the stock let he without a cocktail party. And he would not look you can rent and said. I'm on the board this company implemented what it ready about the company is well I don't know. You know a and we can't block the B roundup I tried the I would FDA trial we get mail truck that also insider information that is not in the public domain and even Howland didn't do anything with that information. He would be indicted he's carpet chipper. They can't beat a prisoner received that information. That person if they don't act on it maybe we'll never get will ever get a charge but in dictate that looks like Colin called his son. The son acted on the information on material information that was not in the public domain. Then the sun tells his fiancee and her father all of whom seem to make a trade right after. And this is just a classic case the tipper and the TP get indict. So Collins doesn't have to sue himself trade off stocks in order to be doing something against the law. Al insider trading is the dissemination of material information about public company. And it that is not already in the public domain I think what appoint data similarity which is kind of interesting which is. You know if you look at that had love. Craziness around Elon Musk you know we talked about that if we come to find out. That he on the mosque was just playing it with us and he'd be just beacons something at and and actually. This committee also heard about it publicly traded company that's got insider trading but that is also a security infringement and actually investigating him right now. Who what how similar is this. To Martha Stewart. It's a little bit but it's fascinating it's clear whether Martha Stewart actually conducted insider trading because he did. Get it she did not go to jail for that she got the went to jail for lying to practice for two regulator. Bill it would be similar if they could actually figured out that she traded on that information or not but they do. Not having elevating the elder for the lie. That the insider trading. This is so classic because if they have they go on record in calling his side. And then they grow and pull the tape compellent stock trading pay and eat it is not a huge companies so it's not that he. Making a trade in unit General Motors where he owned a hundred chairs and stop it hit thinly traded stock. And he thought to be blocked it right before information came out and there's a record of this cult transpiring it's a hard thing to get back. Looking at its this case and Collins himself in not trading stock away. He said day it that was not the indictment in a news conference yesterday the US attorney said that's because he was already under investigation. And there were also hearing because that. He was serving on the board of directors are there certain rules that govern. If somebody who's serving on the board can you know trade off a bunch of stock it wants. I mean you Sarah that there are certain rules but every publicly traded company. I'm an that this is a small one relatively speaking but every publicly take he had rules about easily black out period. Where the board of directors and high level employee can't trade the stock and resilient people who work out Wall Street and they can only sell their stock. We need windows. And that window he usually around and it and silly they know they're doing their quarterly earnings you can trade before that. They do it a week after the analysts call has taken place so this could be very. Highly improper for anyone on the board of directors to buy or sell shares without disclosing it. Around any event that could occur. How was this innate company doing now. Oh my god you know. I think that two days that day after they made the announcement public that the trial failed to stop within 990%. So not very well. Yes hit that's even I can tell you. That's not how you want your stock to be performing down 90% doesn't sound it. Yeah ninety's not good at it on I'll also say that it 818. I I had to go look into this but I could not believe that we see it as. You voters allow our lawmakers to serve on publicly traded company board I think that that's actually the original sin why should we allow that to accretion capped it. Stepped down from anything not to mention he had everything an agent blind trust that he's crazy that we let this happen. But he's allowed grade that there's not a law against that. Now there's no law against it and and you know we had a sixty minute story about as an insider trading a little while back around that said there were some rule changes about. You know what what the congress people can do about laws and issues that are before them because it was the other way where that he at a congressional committee. Guys impressing somebody about. A violation whether it's Telecom Marseille beat and they get access to insider information that they cannot trade on the so. This is something that BP. It wondering if you have any insight on how long these cases typically go linger on foreign court jurist there's no real precedent set for that. I'm visit it. Hitters are very clear and prosecutors don't bring I had I should say in this age I will say that there. Prosecutors do not bring cases they don't think they can win it that's actually shame because that that it leaves a lot of people out but. This this does as. You don't want attorney said it looked like a slam dunk it could go on for a little while he wants to fight it that's fine but his name is gonna be in the news that a lot of bad stuff gonna come up. In the process of the discovery so I think it made beaded. You guys I have summoned to. Representing your region. Are right jell always great to talk with you. Better much better understanding now. Of insider trading that's just less injure from Jill on money Saturday's four until sexier and WP EM.
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