AND NOW, THE IRONY OF ALL IRONIES. Ivan Boesky, we learn, was permitted to sell off a good chunk of his investment fund portfolio late last week, knowing all the while that the Securities and Exchange Commission on Friday would disclose that he had settled charges of insider trading by paying a $100 million penalty.
It's a bit like letting a jewel thief, caught in the act, stay unsupervised a day or two in the store until the cops get around to bringing him up on charges.We may even wonder if the cops weren't in on the whole thing. Mr. Boesky, according to the New York Times, was able to sell $440 million of securities just before the announcement Friday of his settlement with the SEC. How much of that was profit, and to what extent he participated, we haven't been told.
But half of the $100 million penalty went directly to the Treasury. Is it too much to suggest that the cops had an "insider interest" in the way things worked out?
Some investors apparently think so. Again, according to the Times, there were reports that a number of big investors were talking to a law firm about entering a class action suit against the SEC