Sunday, January 16, 2011

“Expert Networking” or Bribe to Blab?

Al Lewis in Sunday Journal leans toward the latter view:

Bob calls people-in-the-know at publicly traded companies. He says, "Hey, wanna do consulting?"

What kind of consulting? "Oh, you know. Just handing over corporate secrets. Easy money."

Bob then calls hedge funds: "Hey, wanna buy some stock tips?"

Hedge-fund managers have wealthy clients who pay them a premium to beat the market. And what better way to beat the market than to fix the market?

Insider trading? Nah. This is "expert networking."

* * *

It would be comforting to write off Bob as a cynical urban myth. But Bob is not only a real person, he likely represents an entire industry.

Last week, 32-year-old Bob Nguyen, of Stockton, Calif., pleaded guilty to fraud charges in a Manhattan federal court.

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