A judge on the trial of the 25-year old equities broker/trader John Hartman for insider trading tsk tsk-ed the entire financial industry for corrupting the young fellow.
Hartman made $1.9 million front-running Orion’s trades – something so easy that he can’t be held solely responsible, said the judge.
The judge jailed Hartman for four and half years, but implied that Orion Asset Management, the fund Hartman worked for, is also to blame – and it should be ashamed of itself for not supervising Hartman better.
According to the Sydney Morning Herald, the judge’s exact words were:
“Paying $350,000 to a recent graduate of 21 years of age carrying out a task of modest responsibility underlines the extent to which the values which underpin our society can be compromised.”
“The temptations are so great and the potential rewards so significant that the fall into criminality of individuals is a significant risk.”
The delicious concoction Orion fed Hartman, according to the judge, was the ease of front-running mixed with the temptations – trips to Vegas and luxury cars – of a “plastic” lifestyle. It was so good, Hartman was essentially drunk.
Exhibit A, for example, shows how loopy Wall Street made Hartman. After front-running Orion, he wrote to his friend:
“Wow, the price is going up.”
Hartman’s friend, who he (allegedly) told to front-run Orion’s trade too, is also in trouble. Hartman ratted him out for a 25% lesser sentence. That, at least, the judge can’t blame on Wall Street.
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