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insider trading

" U.S. accounting firm Deloitte & Touche LLP has won a lawsuit against a former top executive it accused of improperly trading in stocks and options of the firm's clients, including Motorola Inc and Best Buy Co Inc. A Delaware court sided with Deloitte in the case in an opinion dated Dec. 29, saying the former executive, Thomas Flanagan, had "obviously" been in violation of his employers' independence policies in making certain trades. Deloitte had sued Flanagan in Delaware Chancery Court in October 2008 for breach of fiduciary duty, fraud, and breach of contract, saying the 30-year partner who had risen to vice chairman of the firm had secretly hidden trades in shares of Deloitte's audit clients and lied about it to the firm. "Because an auditor sells, at base, its independence and integrity, the firm relies heavily on the purported honesty and independence of its professionals," Vice Chancellor John Noble, of the Delaware Court of Chancery, wrote in his opinion. Deloitte said in its complaint that starting as early as 2005, Flanagan had made more than 300 trades in shares of Deloitte's audit clients, including several clients for which he was Deloitte's advisory partner. "

Click here for the entire story. How could a partner be so stupid? Yes, we have access to valuable information that can make us rich, but that's the whole point behind the illegality of insider trading. There are so many independence regulations at the big 4. To expect to not be caught is absolutely ridiculous, especially if it's around 300 trades. 1-10 maybe, but 300? Please.

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Comments

Anonymous said…
All the smart guys eventually leave and the firms only end up with the dummies who stay as leaders.

I am surprised that you are so shocked at this!
January 6, 2010 at 4:39 PM
Anonymous said…
lol! nice to hear that the leaders are dummies hahaha
January 10, 2010 at 4:43 AM
itauditsecurity said…
Even policeman are fallible and greedy. That's why I asked, "Who Audits the Auditors?." Granted, my article was aimed at use of technology by auditors and the protection of data, not insider trading.

It just goes to show that signing a paper that says you did/didn't do it means very little.

Overall, I've found too many auditors accept substandard evidence for the "assurance" they provide. Hmpf!
January 10, 2010 at 8:10 AM
Anonymous said…
Hi there, I've been reading your blog for quite sometime, I’ve found it quite informative specifically since you've been able to speak about the good and bad aspects of working in big4. I just started as an intern at one of the big4, it’s been bugging me for quite sometime, how much work do u realistically expect an intern to get done? Thanks
January 13, 2010 at 1:46 AM
Anonymous said…
u might want to moderate comments.. ur getting a lot of spam
January 21, 2010 at 7:53 PM
notfordisplay said…
Thanks, i've added word verification. Hope this works.
January 22, 2010 at 7:33 PM
Rachel Hunt said…
I'm sorry that i can't be of any help. I had an identical problem really recently. Good luck with working this issue out. I am so sympathetic to you.
February 18, 2010 at 10:23 AM
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