Goldman Sachs and Apple, two of the hottest companies in the stock market, have caught the eye of many investors, traders and momentum players. Ditto the eye of the Securities and Exchange Commission, which, I've learned, has recently kicked off trading investigations into the securities of both companies....

They're just two of a rash of new stock trading inquiries--at least 34 of them--that the SEC has recently fired off to the brokerage community....

This large batch of inquiries is said to reflect stepped-up efforts by securities industry regulators to crack down on the bad guys, notably those who may have illegally traded on inside or non-public information....

Aside from the companies mentioned earlier, the SEC is also investigating trading in the Wendys Arbys Group, Cell Therapeutics, Rome & Haas, Republic Services, Union Bankshares, Longs Drug Stores (which was acquired last October by CVS Caremark Corp. for $2.9 billion), Financial Fed Corp., Teppco Partners L.P. and Atlas Energy Resources.

Wrapping up the list are Alpha Natural Resources, Infinera Corp., Jackson Hewitt Tax Services, Usana Health Services, Calpine Corp., Altigen Communications, Neopharm, Quantum Fuel Systems Technologies, Cedar Fair L.P., Interstate Hotels & Resorts, FGX International Holdings, Maguire PPTYS and BPW Acquisition Corp.

Who says illegal trading is dead on Wall Street. Only the dead!

(emphasis added)

http://www.huffingtonpost.com/dan-dorfman/new-sec-trading-probes-ey_b_457731.html

Interesting. I wonder if this has anything to do with recent purchases by a certain investor and his companies.

There was trading going on by insiders that had information that CF wasn't telling the public. A year ago they was saying all was well.

I wonder if this affected why CF kept delaying their earnings report?

The way this will work is that Goldman Sachs will get a break, and probably a few trillion more in bailout money. Then they will rat out the smaller companies, devalue them, and buy them for pennies on the dollar.

This stuff, should they be doing something wrong, could lead to CF making toothpicks from SOB - just to have lunch money!

Given the potential sale, a SEC investigation is not surprising.

Now if there was no potential sale, and a investigation was announced, that would raise some red flags.

Cedar Fair LP itself need not be concerned at this point. Its insiders may need to be, though. From the article:

...It should be duly noted these investigations are not of the companies themselves, but rather center on trading in their securities.

In its queries to brokerages, the SEC requested the names of their clients both here and abroad who traded in the securities of the companies in question in specified time periods....

Put more simply, if parties inside or related to Cedar Fair knew about, say, the then yet to be announced proposed merger by Apollo (or told others who then--), and then bought low before the announcement and sold higher after the announcement....or if they timed the merger announcement so as to obtain a low acquisition price for Apollo to buy the company while knowing that they themselves would then be allowed to buy into the surviving company....then those parties have reason to be concerned...very concerned. Insider training using undisclosed public information is illegal and is usually dealt with very harshly, when it is prosecuted.

Insider training using undisclosed public information is illegal and is usually dealt with very harshly, when it is prosecuted.

Is it not prosecuted very often?

Isn't this what happened to Martha Stewart?

That is the first thing I thought of after reading

...then those parties have reason to be concerned...very concerned. Insider training using undisclosed public information is illegal and is usually dealt with very harshly...

It is difficult to prove, and is, therefore, not usually prosecuted unless proof is in abundance. The SEC does many investigations. Most do not result in prosecution. Those that do usually have abundant proof and often result in the defendant(s) plea bargaining to accept a lesser offense in return for a guilty plea. This is probably a good place to point out Martha Stewart was not prosecuted for insider trading (though she was investigated and indicted for it), but rather for lying to federal investigators...

http://www.cato.org/research/articles/reynolds-040309.html

Cedar Fair LP itself need not be concerned at this point. Its insiders may need to be, though. From the article:

...It should be duly noted these investigations are not of the companies themselves, but rather center on trading in their securities.

In its queries to brokerages, the SEC requested the names of their clients both here and abroad who traded in the securities of the companies in question in specified time periods....

Put more simply, if parties inside or related to Cedar Fair knew about, say, the then yet to be announced proposed merger by Apollo (or told others who then--), and then bought low before the announcement and sold higher after the announcement....or if they timed the merger announcement so as to obtain a low acquisition price for Apollo to buy the company while knowing that they themselves would then be allowed to buy into the surviving company....then those parties have reason to be concerned...very concerned. Insider training using undisclosed public information is illegal and is usually dealt with very harshly, when it is prosecuted.

Which is how Goldman Sachs has always done business. Where did Paulson and Geithner used to work?

Not the place for politics...or I'd ask, they worked for a living? Really?

The first things that comes to mind is a certain quote from a certain yellow sponge...

♫it just gets better and better♫

Well...certain insiders may have thought they bought and sold just in the nick of time, but may now be in a pickle...all for a nickel...or so.

(It somehow makes me happy to post that tune by Mr. Vallee)

Not the place for politics...or I'd ask, they worked for a living? Really?

I didn't consider that political.... It was more anti Goldman Sachs, which is not a government body. Sorry, my friend.