Report of Firm Investigated by the SEC Assignment

Report of Firm Investigated by the second gear - Assignment ExampleOn June 2003 the SEC (2009) a reported that a suit relating to securities fraud was filed against Martha Stewart and her stockbroker Peter Bacanovic by the Securities and Exchange Commission (SEC). The SEC alleged that on December 27, 2001, a crime of insider trading was committed when the Stewart sell stock that was held in the company ImClone Systems, Inc (SEC 2009). This decision to sell was based on a tip that she received from Bacanovic who at that time was a broker with Merrill Lynch.ImClone Systems was a biopharmaceutical company which was awaiting a ruling on a cancer treatment drug from the Food and Drug Administration (FDA). A day before the resolution that the drug was being investigated Stewart sold her shares in the company. This sale was based on the actions that were anticipated from the FDA. Both Stewart and Bacanovic conspired to conceal information from the SEC and were therefore slapped with addit ional charges for fashioning false statements (SEC 2009). Martha Stewart appeared to have an advantage when she sold her stock a day before the public would have knowledge about the FDAs investigation.U.S. Securities and Exchange Commission. (2003). SEC Charges Martha Stewart, Broker Peter Bacanovic with Illegal Insider Trading. Retrieved from http//www.sec.gov/news/press/2003-69.htm Accessed 6 Oct