(Bloomberg) — An Idaho man who worked as an information technology professional admitted to making at least $3.5 million by illegally accessing the stock picks of the personal finance website Motley Fool before they were released.
Most Read from Bloomberg
David Stone, a freelance web developer from Nampa, Idaho, pleaded guilty Friday to securities fraud in New York before US District Judge Mary Kay Vyskocil as part of an agreement with federal prosecutors and is scheduled to be sentenced on Feb. 14. Prosecutors said Stone provides IT support for small businesses via remote access to their computing systems.
Stone, 37, was charged in May with gaining unauthorized access to Motley Fool’s computer system and viewing the group’s recommendations before they were announced to paying subscribers. He then traded on them, sometimes using options contracts that paid out only if shares gained within a week, and also shared the information on multiple occasions between January 2021 and March 2022 with another person who made more than $2.7 million, prosecutors said in a statement.
While prosecutors didn’t identify the investment advisor or the tippee, the US Securities and Exchange Commission filed a tandem civil complaint against Stone that also named a friend, John D. Robson, as complicit in the scheme. Robson was not criminally charged. The SEC said the two engaged in a scheme that generated more than $12 million in illicit profits since at least November 2020.
Among the dozens of recommended companies whose shares Stone and Robson traded based on the hacks were Amazon.com Inc., Lululemon Athletica Inc., Peloton Interactive Inc., Airbnb Inc. and Coinbase Global Inc., according to the SEC.
Prosecutors agreed that Stone faces 46 to 57 months in prison under federal sentencing guidelines and a fine of $20,000 to $5 million.
The case is US v Stone, 22-cr-510, US District Court, Southern District of New York (Manhattan.)
Most Read from Bloomberg Businessweek
©2022 Bloomberg L.P.
(Bloomberg) — Oil clung to a slight gain after a slew of rate hikes around the world reaffirmed central bankers would continue to fight inflation at the expense of economic growth. Most Read from BloombergJapan to Restore Visa-Free Travel From Oct. 11 as Covid Pandemic Recedes South Korea President Caught on Hot Mic Insulting US CongressUnless Rents Rise, Housing Is Set Up for an Epic CrashA Great Copper Squeeze Is Coming for the Global EconomyPutin’s Order for 300,000 Fighters Drives Russians
The North Cobb Warriors are soldiering on this season without star quarterback Malachi Singleton hosting Milton.
Whether Bitcoin succeeds will largely hinge on whether people have confidence in the incumbent fiat system to which it poses an alternative and in the central bankers who, since the end of the dollar’s gold peg 1973, have determined the monetary policies behind that system.
(Bloomberg) — The Federal Reserve’s efforts to step up its fight against inflation will cast doubt on the Bank of Canada’s ability to limit its own interest rate hikes.Most Read from BloombergBank of England Says Paper Banknotes Only Good for One More WeekRisk Assets Crushed With Few Signs Drama Is Over: Markets WrapJapan to Restore Visa-Free Travel From Oct. 11 as Covid Pandemic Recedes Larry Summers Warns Pound May Tumble Below $1 on ‘Naive’ UK PoliciesUnless Rents Rise, Housing Is Set Up for
As Texas officials moved to restrict abortion, promote Christianity in schools and the state’s power grid teetered on collapse, oil worker Steven Beaman and his wife Hayley Hollands decided it was time to live elsewhere. By April, Beaman had joined a communications firm in Colorado, leaving behind a more than decade-long career in oil and gas, and Hollands, an attorney, soon followed, forsaking the state over its increasingly strident politics and polarization. “It is kind of the first time I’ve reckoned with the idea that I don’t think I’m going to live in my home state ever again,” said Hollands.
Target-date funds and index funds are popular investments, particularly for retirement portfolios, since they require little action on the part of investors. Target-date funds, or TDFs, became particularly popular after they were approved for defined contribution 401(k) accounts. Both are … Continue reading → The post Target Date Funds vs. Index Funds: Which Is Better? appeared first on SmartAsset Blog.
If you want to invest your money in a smart way, financial experts have recommended avoiding big, high-growth stocks in favor of value names that aren’t as popular. The basic strategy: identify opportunities while minimizing some risk. But the Chicago-based … Continue reading → The post Morningstar Tells Investors This Metric Is More Important Than Stock Value or Growth appeared first on SmartAsset Blog.
(Bloomberg) — Compute North Holdings Inc., which provides data center services for cryptocurrency miners and blockchain companies, filed for bankruptcy in Texas on Thursday.Most Read from BloombergBank of England Says Paper Banknotes Only Good for One More WeekLiz Truss’s Historic Gamble With the UK Economy Is Already UnravelingRisk Assets Crushed With Few Signs Drama Is Over: Markets WrapLeaked Study Shows Exxon, Partners Overspent by $138 BillionBased in Eden Prairie, Minnesota, Compute North
Yahoo Finance Video
Yahoo Finance columnist Rick Newman discusses the debate over the possibility of a soft landing following the Fed’s latest rate hike and whether or not the U.S. economy is headed for a recession.
As Federal Reserve Chairman Jerome Powell seems almost intent on causing economic pain with a series of aggressive rate hikes to quell inflation, investors are wary that a recession would cause trouble for the banks. The market has already been discounting an adverse economic scenario for banks, ignoring the offsetting benefits of higher interest rates on net interest income. Bank of America’s CFO spoke at a conference on Tuesday, giving confidence in the strength of the franchise and its customers.