Friday, May 30, 2014
Who was the insider who sold bonds May 23,2012?
This trade "stinks" of an insider trade for the following reasons:
1) these bonds hardly ever trade only 39 trades in 3years.
2) all the owners were all "accredited " investors and all but $7.2 million were identified to be held by insurance companies
3) its extremely likely the accredited investor who sold so presciently is a Rhode Island Resident.(can you imagine how hard it would be to convince someone outside of RI in such a short time frame to invest)
4) This resident is extremely likely to be connected to those involved in the 38 studios scheme which now has an estimated 100 subpoenas floating around related to the failed entity.
5) Since the owners of this $7.2 million worth of Private placement bonds are almost certainly very wealthy Rhode Islanders they are connected for sure to the statehouse and politicians and could have easily received a tip in May about 38 studios shutting down.
6) It definitely looks like it was one trade representing a sale of one wealthy investor. The last trade prior to May 23 sale was on April 3,2012. There were only 4 trades in all 2012 prior to the May23 sale.!! the last trade prior was March 2011.
So while we wait for this to be investigated or further covered up.My opinion is that there is better than a 50/50 chance it will result in Insider trading Charges and both the criminal tippee and the criminal insider trader will be revealed as very well known Rhode Islanders. After all how many Rhode Islanders have that financial wherewithal. and savvy?If they obfuscate or give false testimony felony jail time is likely.