The Nexus Between Insider Trading and Infidelity

Moneybox
A blog about business and economics.
Feb. 27 2014 2:36 PM

The Nexus Between Insider Trading and Infidelity

Why would a prosperous business executive risk his freedom to engage in a little insider trading? In a fascinating column, Gary Silverman observes that the motive is often not so much money as love—or, rather, a need for money that can be disguised from your wife in order to give it to your mistress:

The government’s allegations portray Mr Hixon – a 56-year-old banker widely known as “Perk” – as a classic case of a married man who needed money that his wife wouldn’t know about. The US Securities and Exchange Commission says he had fathered a daughter – now five years old – during the course of a years-long relationship last decade with a woman about two decades his junior called Destiny Wind Robinson.
To help pay for Destiny’s child, as it were, the government alleges that Mr Hixon trafficked in sensitive corporate secrets – a store of value well suited for a player looking to pay off personal obligations without leaving a paper trail. Relying on material, non-public information that he obtained as a senior Evercore adviser on mining and metals deals, Mr Hixon engineered stock trades in his former lover’s brokerage account that yielded almost $900,000 in profits, according to the SEC.
Advertisement

Handing out money is going to get you caught. Handing out tips can be done covertly. Silverman also cites the case of James McDermott who gave a mistress $80,000 worth of stock tips.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.

TODAY IN SLATE

Culturebox

The Ebola Story

How our minds build narratives out of disaster.

The Budget Disaster That Completely Sabotaged the WHO’s Response to Ebola

PowerPoint Is the Worst, and Now It’s the Latest Way to Hack Into Your Computer

The Shooting Tragedies That Forged Canada’s Gun Politics

A Highly Unscientific Ranking of Crazy-Old German Beers

Education

Welcome to 13th Grade!

Some high schools are offering a fifth year. That’s a great idea.

Culturebox

The Actual World

“Mount Thoreau” and the naming of things in the wilderness.

Want Kids to Delay Sex? Let Planned Parenthood Teach Them Sex Ed.

Would You Trust Walmart to Provide Your Health Care? (You Should.)

  News & Politics
The World
Oct. 22 2014 2:05 PM Paul Farmer Says Up to Ninety Percent of Those Infected Should Survive Ebola. Is He Right?
  Business
Business Insider
Oct. 22 2014 2:27 PM Facebook Made $595 Million in the U.K. Last Year. It Paid $0 in Taxes
  Life
The Eye
Oct. 22 2014 1:01 PM The Surprisingly Xenophobic Origins of Wonder Bread
  Double X
The XX Factor
Oct. 22 2014 10:00 AM On the Internet, Men Are Called Names. Women Are Stalked and Sexually Harassed.
  Slate Plus
Tv Club
Oct. 22 2014 5:27 PM The Slate Walking Dead Podcast A spoiler-filled discussion of Episodes 1 and 2.
  Arts
Brow Beat
Oct. 22 2014 10:39 PM Avengers: Age of Ultron Looks Like a Fun, Sprawling, and Extremely Satisfying Sequel
  Technology
Future Tense
Oct. 22 2014 2:59 PM Netizen Report: Twitter Users Under Fire in Mexico, Venezuela, Turkey
  Health & Science
Wild Things
Oct. 22 2014 2:42 PM Orcas, Via Drone, for the First Time Ever
  Sports
Sports Nut
Oct. 20 2014 5:09 PM Keepaway, on Three. Ready—Break! On his record-breaking touchdown pass, Peyton Manning couldn’t even leave the celebration to chance.