A creative jail sentence for Insider Traders

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Dec 05 2007
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You’ve heard how insider traders were punished in U.S. but this news is rather amusing. A former financial analyst at Morgan Stanley (NYSE: MS, stock) and her husband were each sentenced yesterday to a year and half in prison for insider trading. The husband, Ruben Chen was a former hedge analyst at ING. Ruben and his wife, Jennifer Wang, would have to serve the combination three years in prison but it appears the Judge Colleen McMahon of United States District Court in Manhattan has other idea.

Judge Colleen decided that the husband and wife should serve their sentences one after the other so their infant son would have one parent with him for the three years. Jennifer’s plea not to serve the jail sentence justifying she needs to be with her son was rejected as the judge said she would not let Ruben “take the fall for both.”

“Ms. Wang, you are not less culpable. You are more culpable. You are the thief … You have done this to your son” Judge McMahon said. Federal prosecutors accused them of trading based on nonpublic information material that Jennifer obtained from Morgan Stanley, gaining more than $600,000.

However the judge sentenced them so that Jennifer would report to prison after Ruben was released and their son had turned 2. A nice and flexible proposition isn’t it?

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