On Friday, the SEC charged Thomas Hardin, a managing director for Lanexa Management, with insider trading regarding corporate takeovers.
Here’s how it went down. Moody’s rating agency illegally told various rich and well connected clients like institutional traders as well as hedge fund managers and money managers about the pending Blackstone group purchase of Hilton Hotels. Roomy Khan told Thomas Hardin, and Thomas Hardin went out and bought a bunch of shares in Hilton Hotels.
The next day when all us small traders and investors found out about the Blackstone purchase on the news and rushed in to buy, Thomas Hardin sold some and let some ride to the tune of $950,000.
Thousands of traders saw Hilton Hotels run up the day before the story was published by the media and they complained to the SEC.
I don’t know what’s more stupid, Thomas Hardin doing this in the first place, or his bad judgment and being so greedy to go for $950,000 profit on the trade.
Also there should be no doubt that Moody’s rating agency very existence is not to protect investors like you and me. They are out for the rich and seem to routinely help institutional traders at the expense of smaller traders like you an me. Think about how they gave false ratings on mortgage backed securities traded over the shadow derivatives market to benefit the rich. The very idea that a rating agency would be paid by the very corporations that they are suppose to rate their assets is stupid. Talk about a conflict of interest. It’s just like college accreditation businesses being paid by the University of Phoenix and the very colleges that want a favorable accreditation. This model of paying the very agencies that are suppose to rate you is just another example of a corrupt and failed republican administration that put these mechanisms in place.
In the video below, I go into more detail about this insider trading scam and I give Thomas Hardin the Stupid Business Move Of The Week award.