Feeds

Big Blue secretary busted for insider trading

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

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

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." ®

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.