TheStreet.com journalist linked to insider trading ring
Reed Albergotti of The Wall Street Journal writes Friday about how Michael Baron, a senior editor at TheStreet.com, has been tied to a sophisticated insider trading ring.
Albergotti writes, “Mr. Baron — described in the complaint as a co-conspirator, or ‘CC-1,’ and as ‘a reporter at a financial news website’ — hasn’t been identified previously. According to the criminal complaint filed in the case, CC-1 couldn’t purchase shares related to an expected acquisition he heard about last year because of restrictions imposed by his employer, but he urged his father to buy shares ahead of the announcement.
“Mr. Baron hasn’t been charged in connection with the alleged conspiracy. He declined numerous requests for an interview. Through his lawyer, Arthur Zucker, Mr. Baron said he cooperated fully with the investigation and continues to make himself available to investigators. He said his client is ‘appreciative of the efforts of the government and its thoroughness’ in investigating the case.
“Mr. Baron’s father, who also is named Michael, purchased the stock and made less than $10,000 profit, according to a person familiar with the matter. Mr. Baron’s father hasn’t been accused of any wrongdoing. He didn’t respond to requests for comment.
“The apparent confluence of bad luck and an alleged lapse in judgment that landed the younger Mr. Baron in the FBI’s cross hairs serves as a cautionary tale about the rules governing the sharing of financial information.”
Read more here.