Today in consequences of career limiting moves, a former EY auditor settled charges with the SEC that he traded on insider information about a merger of a client that he was staffed on.
Now, I know you’re thinking, “Wow, that was dumb.” And yes, that was incredibly bad decision on the part of Nima Hedayati, but the details are truly worthy of #smh (which I never condone using except in extreme circumstances):
Out-of-the-money call options? Trading on your fiancee’s account? Tipping your mom? And then, according to the order, mom “sent him $2,000 as a ‘thank you’ gift.” Lots of bad choices here, people.
It’s been suggested that he wasn’t paying attention during training, but even so, I think auditors actively ignoring ethics/misusing client information videos know that insider trading on a client is wrong? Is there a plausible excuse here? I’ll wait why you think it over.
Naturally, EY fired Hedayati when it found out about his little stunt. I like to imagine the person sitting across from him, glaring, until Hedayati coughs and says, “I’ll just get my stuff and go.”