Disney/Marvel insider trading accusation
Deadline reports the Securities and Exchange Commission filed a complaint today against a man named Toby G. Scammell for apparently using confidential information about Disney’s planned acquisition to make a large profit for himself.
The information was said to have been obtained via his girfriend, a Disney employee, unbeknownst to her. “Scammell got the insider information from his girlfriend’s BlackBerry and used some cash for his purchase from the account of his older brother, who was in the Army and deployed to Iraq at the time,” writes Deadline. “The options raised a red flag at the SEC as Scammell, then 24, had never traded Marvel securities before buying the $5,400 in options. After the sale was announced, Marvel’s stock rose 25%, giving Scammell a 3,000% profit when he sold off.”
The Hollywood Reporter says Scammell was working at investment fund at the time he made the purchase which cost him $5,400 at the time. “The SEC did not name the brother or girlfriend and said neither was involved in wrongdoing,” writes THR, who also had a response from Disney, “This does not involve Disney and the complaint speaks for itself,” said a Spokewoman.
(Image via Eldelgado)
I busted up laughing at the Mickey Mouse as Wolverine image.
That being said, insider trading is bad. Without regulation, investors can conspire to falsely jack up the price of a stock, sell it for a fortune, and then sit back and laugh as the stock value collapses.
This is one of the reasons The Great Depression happened, and why the SEC was created.
In time, I can see some politicians dismantling the SEC and telling us that we can trust the market to fix the problems all on its own.
You might as well lead with, "When did you stop abusing your child?"
I understand that as it circumstantially involves Disney/Marvel it hits your radar, but unless there are facts not in evidence implicating Disney/Marvel as entities as party to some larger conspiracy, then it has absolutely nothing to do with them which is the clear and only grammatical understanding your title conveys.
"Man accused of insider trading on Disney/Marvel" would be more accurate. Your title implies the entities are the subject, not an adjective.
Certainly, I'm not stating the story is without merit or it shouldn't be discussed. Who knows? At the end of the day there may some larger conspiracy, but that is not the case at this time. If you truly feel your title is an accurate representation of the facts of the story…then I'll just have to agree to disagree.
One is supposed to read it however they interpret it I suppose but the way I read it is there was an insider trading accusation that involved the Disney/Marvel company. Which is what happened. Saying the incident had "nothing to do with" them is a little silly, it happened to their company. As stated in the post, they have not been named in any of the legal actions. I can see how you would read it that way though. I apologize if I did you a, as you say, disservice.
"one interesting way to read it"?
How else is one supposed to read it? Based on the facts of the original story, the insider trading had nothing to do with with Marvel or Disney, but the boyfriend of someone who worked at Disney. The title of your post suggests that there was intent or action on the part of the entities named, of which, so far as the facts have been revealed, there was none. If your intent was to get people to read your post…then I suppose you achieved your goal. But if your intent was to convey a story, you've done yourself and readers a disservice.
Well, with a name like Toby SCAMmell you think that would be their first clue. :)
Honestly, I'm just jealous. And some people should quit hating on him. Isn't Insider Trading a little abstract in the first place? It's like when you unwittingly find out what your birthday present is, you can't un-know this information. I think this guy made what can be considered half a drop from an eyedropper into the reservoir of cash being made from owning the Disney/Marvel business, and we all should just chalk it up to some clever thinking and fast-action.
So I'm jealous.
I suppose that's one interesting way to read it…
Well that's a slightly inflammatory title, don't you think? It makes it sound as though there was some wrongdoing on Disney and/or Marvel's part.