Insider Trading Article 1. What is Jeffery Archer accused of? Jeffery Archer is accused of insider trading with the shares of Anglia TV. Jeffery bought shares for the "inside information" of the companies dealing account, the day after the last board meeting but before the bid was announced. He should have known that even if he found out insider information from his wife the law makes it clear that he cannot deal or trade with that stock.
It would be considered unfair to the rest of the shareholders, because other shareholders would not have the same information like Jeffery. As we know the buying and selling of shares must be based on public information Q 2. Who is Mary Archer and which insider trading rule, may she have violated? Mary Archer is the wife of Jeffery Archer, and also she is a director for Anglia TV Company. The insider trading rule that Mary may have violated is that if she did tell her husband about the insider information from board meetings, she should beware that director's close relatives are not allowed to deal ahead of takeover bids.
Also questions arise in the article, that as it is accepted that Mary did not tell her husband about the bid, how much information has found out without her knowledge. If she did share information with her husband than she violate the rule of insider trading which states that:" Insider shouldn't communicate private information to others who are likely to use it." Q 3. Who is Brooke Saib and which insider trading rule has he violated? Brook Saib was the aide of Jeffery Archer. The article shows that he has access to brokers and invests a lot. What happened was that Jeffery bought shares through a different broker than the usual, with the name of Brook Saib and the profits transferred to Saib's account. The odd thing is that also a profit of 80, 000 pounds has left Saib's account.
And over that, he said that "dare not say" where the money is. Also there was an issue of Taxes, so the capital gain of 80, 000 should be taxed. So he was part of the crime of insider trading with Jeffery Archer, aiding him through the process and taking his part of the deal. So he is also involved in the violated the rule of "a person should not buy or sell shares based on insider information or procure other to buy for them.