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JimVanMeerten (65.36)

I want to insider trade or I'll sue

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October 21, 2009 – Comments (3) | RELATED TICKERS: WFC

I was going through the stack of newspapers that accumulated while I was on vacation and on the front page of The Charlotte Observer was the headline "Cameron Harris sues Wachovia". Since his family sold their insurance company to First Union, Wachovia's predecessor that's big news here in Charlotte. Friends just don't sue friends in Charlotte, bless his heart.

His suit claims that while on a hunting trip with Ken Thompson, Wachovia's then CEO he pumped Mr. Thompson for information about what was really going on in Wachovia. He asserts Ken Thompson's failure to give him what would have been unpublished insider information caused him to keep his stock and incur a large financial loss.. He might have gotten out at $55 instead of riding it down to what ever he owns now. He and his family owned around a million shares so the pony ride down cost him some real dough.

I'm no legal genius but if Ken Thompson had told him about what was really going on and he sold his stock before the swan dive wouldn't he be guilty of insider trading? Wouldn't both he and Ken Thompson be eligible of a free trip to Club Fed down at Ft. Walton Beach, Florida? Hasn't he heard of Martha Stewart.

We all remember how Martha acted on a tip from her friend Sam Waksal and did some time for insider trading. Her trade only gained a few hundred thousand, Cameron Harris' gain would have been around 50 million.

This is a suit I'll have to follow. Can you really sue for failure to receive and act on insider trading information?

Jim Van Meerten is an investor and blogs on financial matters at Financial Tides. Please comment below or email to FinancialTides@gmail.com

Disclosure: I am a former employee of Wachovia and have family members working for Wells Fargo and they have an interest in Wells Fargo stock and vested and unvested stock options.

3 Comments – Post Your Own

#1) On October 21, 2009 at 2:38 PM, caterpillar10 wrote:

It definitely looks like it would have been an insider trade, however, there may be details re: some fiduciary responsibility to Cam under the sale contract that would carry over to Wachovia.... I'm not enuf of a law geek 2 know for sure.:) that's why they make (or lose) the big bucks.....  

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#2) On October 21, 2009 at 8:46 PM, KeenObserver1 (< 20) wrote:

"Martha acted on a tip from her friend Sam Waksal and did some time for insider trading."

Every word written here is a lie, which means VanMeerten is a lying fool.  Martha acted on sound investment management principles; only two months earlier, she made the decision to sell ALL of her ImClone shares in a tender offer from Bristol Myers, which was oversubscribed.  Obviously, as one of the fleecing Motley Fool's many charlathans, VanMeerten is clueless and uneducated about sound investment management principles.  Martha had no contact with Waksal; she acted on no "tip" and did "time" because she was railroaded in a bogus conviction on bogus charges, which were enabled, aided, abetted, and facilitated by gross incompetent legal representation in her case from get go. 

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#3) On October 21, 2009 at 11:23 PM, caterpillar10 wrote:

calm down Martha....it's all over now

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