Consequences – insider trading edition #1
Let’s examine the consequences on the horizon for Mr. Scott London, former KPMG partner, as a result of his indictment for allegedly trading on insider information. I’ve discussed that here and here.
For some time I’ve been writing on the tragedy of fraud with a focus on the consequences that befall the perpetrator. I’ll continue that discussion by looking at the public reports for this situation.
Is possible jail the only bad thing on the horizon? Not quite. There’s a long list of bad things in view.
As you read this, keep in mind my comments include a mixture of reported facts and my guesses & assumptions. I’ll try to label the discussion accordingly.
Let’s explore the consequences, assuming the reality is the same as what has been reported. Here’s the list I can think of:
- Jail time
- Criminal fines
- Legal fees for criminal case
- Civil fines
- Criminal tax enforcement
- Publicity
- Loss of employment
- Loss of reputation
- Loss of professional license
- Limited future employability
- Litigation from employer
- Legal fees for civil litigation
- Financial devastation
Jail time
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