Feeds

Big Blue secretary busted for insider trading

Saw details of Lotus takeover while photocopying and told all her friends

  • alert
  • submit to reddit

Internet Security Threat Report 2014

An IBM secretary, who saw details of an upcoming takeover deal when photocopying documents, is being sued after she and a group of friends netted $1.3 million. Through Lorraine Cassano the gossip spread to 25 people, including a pizza man, a gynaecologist and an ex-teacher, all of who now stand accused of making profits from insider dealing. The Securities & Exchange Commission (SEC) is hot on the trail of the group, many of them first-time investors, according to today's Daily Telegraph newspaper. The US body alleges that Cassano whispered confidential details of IBM's impending acquisition of Lotus, discovered in the New York office, to her beeper-salesman husband in May 1995. Mr Cassano then tipped off colleague Paul Green in a New Jersey hotel room three days before the deal was due to be announced. Seemingly unable to keep his trap shut, Mr Cassano also blabbed to computer technician Jerry Mazzone. Both agreed to buy Lotus stock and split profits with Mr Cassano. From there, the news spread like wildfire, and within six hours 25 people had bought $500,000 of Lotus shares. These included a pizzeria owner, a dairy wholesaler, a banker, a solicitor and a stockbroker. They picked up $1.3 million when Lotus shares nearly doubled on the deal's announcement. The SEC has filed a suit against all 25, but has already settled with several, including the Cassanos. They have been forced to not only give back their profits, but also pay penalties representing double their gains. An IBM representative told The Register: "We're very careful that this kind of confidential information is not disclosed by staff. "We do not encourage this kind of activity." Former teacher Josephine DeCiccio, who allegedly netted $48,000 from the deal, claimed she was an innocent victim. "I had no idea I was doing anything wrong. You could have overheard something in the grocery store and have had no idea that you could wind up in SEC headquarters." ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.