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            A NEW WAVE OF INSIDER TRADING.
        ONXX: An Example Of Insider Trading

                                              12/26/2007

See www.tigersoft.com for seeing how to trade profitably in an age of rampant insider trading.

                                A NEW WAVE OF INSIDER TRADING.
  

                      "Some high-profile professionals -- lawyers, investment bankers and traders -- have admitted
                  or are accused of scheming to grab illegal profits. A spike in takeover bids is driving the trend...
                  In the past three months, the Securities and Exchange Commission has filed more than half a
                  dozen cases that charge professionals at top brokerage houses, hedge funds and even some top
                  accounting firms with insider-trading plots. The schemes could have earned more than $35 million.

                      The chislers were caught because their moves were "outlandishly dumb".

                  (1) "A vice president at Morgan Stanley used her mother's brokerage account to buy companies targeted for
                 acquisition before the deals were announced."

                   (2) "A Hong Kong couple increased the size of their brokerage account 25-fold -- and made two wire
                 transfers totaling $6.9 million -- just before making a massive illegal trade."

                   (3)  "An investment banker made calls to Pakistan from his office phone to place trades driven
                   by inside information."

                    The spike in mergers has presented more opportunities for the greedy.   And greed seems to have
              gone to their heads, making them imprudent.  But there are other cases. For example, "in 2001, an employee
              of UBS Securities was said to be wondering how he would settle a $25,000 personal loan from a friend. Then,
              the SEC says, he came up with a bright idea: Why not pay it off in stock tips? After all, as a manager in the
              equity-research department at UBS, he knew about upcoming changes in stock recommendations by UBS
              analysts before they became public. So, according to the SEC, he hatched the plan with his creditor-friend, and
              they agreed to split after-tax profits.

                   "The arrangement went on for years, the SEC says, as the two exchanged coded text messages on disposable
             cell phones to swap stock tips and set up meeting places to share the winnings. Before the scheme unraveled
             last year, according to the SEC, it had brought in more than $5 million on trades placed ahead of UBS ratings
             changes on several widely traded stocks, including Whole Foods Market (WFMI, news, msgs) and Amgen
             (AMGN, news, msgs).
 

                             A fox, a henhouse and a bust

                      "A Morgan Stanley compliance lawyer in charge of preventing leaks was allegedly profiting from them.

               "During 2004 and 2005, the attorney gave undisclosed takeover news to her husband, who passed it along
               to a broker in Florida, and they shared the profits from illicit trades made using these tips. The compliance officer,
               her husband and the broker have pleaded guilty to securities fraud.

                                         All in the family

                "In a family-run operation, a father and three sons set up a hedge fund to trade on illegal inside information,
                 perhaps hoping the fund would cover their tracks. The sons and a friend linked to the plot had worked at
                 prominent law firms and the accounting firms PricewaterhouseCoopers and Ernst & Young.

                "They obtained insider information from their father, who had a senior management position at Taro Pharmaceutical
                 Industries (TAROF, news, msgs). The SEC says he provided advance knowledge of earnings news and of
                 Food and Drug Administration approval of new drugs. The scheme netted the group $3.7 million. The father,
                 his sons and a friend who helped with the plot have pleaded guilty to securities fraud.

                                           Our man in Pakistan

                For the past year, says the SEC, an investment banker working on mergers and acquisitions for Credit Suisse
                in New York regularly called a banker in Pakistan to tell him about pending takeover deals so they both could
                profit on the news.

                In the most recent case, he allegedly called the Pakistani banker at least five times from his office phone in February
                to tip him off about the takeover of TXU Corp. (TXU, news, msgs), announced Feb. 26. The Pakistani made
                nearly $5 million on TXU options when the deal was announced, the SEC says. He also profited from tips on
                eight other takeover deals involving U.S. companies, including Jacuzzi Brands and Caremark Rx, a prescription-drug
                distributor bought by CVS Caremark (CVS, news, msgs).

                In many cases, the SEC alleges, the Pakistani banker placed his trades just minutes after getting tips on the phone
                from New York. The Credit Suisse banker allegedly made money by opening a brokerage account in Pakistan.

                                     Call Mom -- she'll help

                 Over the past two years, a Morgan Stanley vice president in New York reportedly used online brokerage
                 accounts in the name of her mother, who lives in Beijing, to buy stocks ahead of takeover news. The employee
                 knew of the pending deals through her job, according to the SEC, which thinks she and her husband made more
                 than $600,000 in the scheme.

                 The two may have thought they were covering their tracks by using accounts of a Chinese resident. But the
                 SEC says that on the days the trades were made, the accounts were accessed through Internet connections
                 from the banker's home in New Jersey or from her husband's employer at the time, ING Investment
                 Management Services.

                 In the two weeks leading up to the May 1 announcement by News Corp. that it wanted to buy Dow Jones,
                 a Hong Kong couple accumulated 415,000 shares of Dow Jones. Kan King Wong and his wife, Charlotte Ka
                 On Wong Leung, would have made $8.2 million on the deal. That's four times the net worth..."
                 (Source:    Michael Brush  "A New Wave of Insider Trading"     5/16/2007
                http://articles.moneycentral.msn.com/Investing/CompanyFocus/ANewWaveOfInsiderTrading.aspx )