wow! Presumably, he believed avoiding the pain of the impending loss of his investment was worth risking up to 20 years in prison…I guess that is the short-term, loss-aversion brain in action.
it would be interesting hearing from him why he did it. His crime would have been so easy to spot…he sold just two hours before the bad news was released! That suggests a kind of temporary insanity!
it must be a weird experience for a board member who holds a fortune in stock, sometimes stock bought on margin, to know that company-devastating news is about to be released which will decimate the share price, taking his fortune down with it…and to avoid this devastation, all you have to do is sell your stock before the news drops!
because directors can’t trust themselves to behave honourably, and we can’t trust them to behave honourably, then perhaps the system should step in and create a process where all their stock has to be held by a separate entity and they have to get permission to sell. The same would apply to buying…
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(20min delay)