A former hedge fund manager basically just bragged that he traded on inside information and doesn’t mind paying the SEC a fraction of his profits on said (alleged) insider trade.
His (alleged) guilt literally would not have been more obvious if he had been waving an, “I’m an insider trader” flag.
Bloomberg says Imperium’s former manager, Stephen Goldfield, just cut the SEC a check for $600,000 – to settle charges that he reaped $14 million trading on confidential information about AstraZeneca’s 2007 acquiring of MedIummune Inc. – on the same day the SEC sued him for insider trading.
Settling charges on the same day of a suit filing is not unusual, but Goldfield’s case is still aggravating because he made $14 million and got off with paying the SEC less than 1/14 of his profits.
Technically, he didn’t admit or deny wrongdoing, but here’s the infuriating evidence against him, from Bloomberg:
In April 2007, a tipster told Goldfield “the weather was in the 50s.” MedImmune was trading at about $35 a share at the time. Also in April 2007, the tipster’s firm submitted a bid to acquire MedImmune for $51 a share. On April 23, 2007, AstraZeneca announced it would buy MedImmune for $58 per share.
Goldfield and [his tipster, James Self] met while attending the University of Pennsylvania’s Wharton School of Business in the mid-1990s. When MedImmune, maker of the FluMist vaccine, began shopping for a buyer in 2007, Self was assigned by his company to help conduct due diligence on a possible acquisition, the SEC said.
Self, who works for Merck & Co. Inc., will pay $50,000.
The penalties apparently reflect the financial condition of the two men.
The only way this could get more annoying is if this were the same Stephen Goldfield that is “holding up traffic” and taking pictures of himself in his hot new ride with his 20-years-younger-than-him-girlfriend.