US authorities are investigating whether executives have been gaming prearranged stock-sale programs designed to thwart the possibility of insider trading.
The Justice Department and Securities and Exchange Commission are using computer algorithms in a sweeping examination of preplanned equity sales by C-suite officials, according to people familiar with the matter. Investigators are concerned that some people are manipulating the stock-sale programs, which are intended to shield executives from misconduct allegations by letting them schedule transactions in advance and on preset dates.
Source: US Probes Insider Trading in Prearranged Executive Stock Sales – Bloomberg
