So he was a little aggressive in his "digging out the facts". (Chalk that up to his youth) I like the fact that he was able to get the info. So he didn't write a report, he is not obligated to do that. He shared his thoughts with clients, he allowed to do that. he didn't have inside info, or the trades would have been "cancelled".
I personally find Aschoff's behavior in this matter highly unethical; however, my post was to confirm the facts which were questioned by another poster.
The big deal to me is his selective disclosure of confidential information obtained by lying to representatives of Genta to only certain clients of the firm he worked for.
<<<I like the fact that he was able to get the info. So he didn't write a report, he is not obligated to do that.>>>
Findings of NASDR were that he obtained the information with the purpose of releasing a report on behalf of his firm.
The firm Friedman, Billings, Ramsey & Co. note specifically in their termination report that he acted upon the confidential information WITHOUT issuing a report.
Seemingly, F, B, R & Co. felt he was obligated to write a report.
<<< He shared his thoughts with clients, he allowed to do that. he didn't have inside info, or the trades would have been "cancelled".>>>
Well, again, the way he obtained the information and how he "shared" it was not sanctioned by NASDR or Friedman, Billings, Ramsey & Co.
Obviously the trades were not cancelled since the Dow Jones article quotes Boston Partners Long-Short Equity LLC as having made a significant return on the short sales made after being tipped off by Aschoff.
<<<Sounds like he got a bad deal to me>>>
Each to his own; I think he got off easy. I favor transparency and fairness to the average investor in the market.
What are you talking about? From the two articles you linked to it appears that (1) Aschoff tried to trick his way into obtaining some useful information, (2) because he was caught, he couldn't issue a written report, (3) so he instead orally told his firm's institutional clients (not "his friends," as you insinuate) about his findings. Sounds like he was acting with the tacit approval of his firm, even if they didn't want to protect him when he got caught ...