Feeds

IBM exec accused of insider trading

Caught on tape

  • alert
  • submit to reddit

Internet Security Threat Report 2014

An IBM exec was today accused of insider trading after his broker allegedly taped him bragging about his exploits.

Stephen Cowley, 37 years old and a VP of IBM's software arm, is accused of making $127,000 illegally from the deal.

The Securities and Exchange Commission is not happy, claiming in a civil complaint that Cowley, who lives in Surrey, discovered confidential information about London-based company 4Front Technologies. He bought 8000 shares in the outfit three weeks before it announced its sale to NCR for $250 million cash in August.

But he blabbed to his broker at Salomon Smith Barney in New York - who swiftly taped the conversation.

Cowley answered "affirmatively" when the broker asked if he "knew something" after he bought the 4Front shares on 11 July, the SEC claims.

"Cowley revealed his highly specific knowledge of material nonpublic information in a series of tape-recorded conversations that he had with his broker when he purchased his 4Front securities," stated the complaint.

The SEC didn't reveal how Cowley came by the knowledge, and also kept the identity of the trader taper secret. ®

Related Stories

IBM cutting the chord by 2001
Ex-Nvidia man coughs to insider trading charge
World Online raided in insider trading probe
Suspected insider trading at Olivetti

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.