Make Big Profits Illegally (and Maybe Keep Them, Too)

Make Big Profits Illegally (and Maybe Keep Them, Too)

www.nytimes.com

There is not much doubt that Oleksandr Dorozhko used inside information when he made a killing trading stock options last fall. Nor is there a dispute that he gained the information illegally. His lawyer, arguing before an appeals court this week, spoke of “a high-tech lock pick.”

But that does not mean that Mr. Dorozhko, a Ukrainian resident, will have to forfeit the $296,456 he earned in one day of trading, beginning just hours before the company in question announced disappointing earnings.

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It turns out that there is a loophole in the system. As per the law, if the person obtains insider information legally and uses that to make a profit off the markets, then he is in breach of securities law.

But there isn't any law saying what would happen if the person obtained the information illegally, like in this case where the person hacked the networks for information.

Weird, huh?

www.nytimes.com
(visit the link for the full news article)