Please ensure Javascript is enabled for purposes of website accessibility
December 2, 2022

Insider Trading Cost Tom Flanagan a Lot More Than 21 Months of Freedom

Late on Friday, word came down that former Deloitte vice chairman Tom Flanagan was sentenced to 21 months in prison for his insider trading activities. People hate it when big shots use their status to trade on information the rest of us don't have access to, but gears grind into dust when people like Flanagan pull stunts like this. Why? Because he's one of those stewards of capital markets that is SUPPOSED to be above all this stuff. Unfortunately, ol' Tom couldn't resist the urge. Where these urges come from, however, is not immediately known:

Thomas Flanagan, a former vice chairman at Deloitte & Touche, said he didn't have a "great answer" to explain why he illegally traded in the stocks of the accounting firm's clients despite his professional and personal success. But the federal judge who sentenced him Friday to 21 months in prison had a possible reason. "The only explanation I can come up with is hubris," said U.S. District Judge Robert Dow Jr. "You certainly didn't need the money." Flanagan's motives for his insider trading were widely discussed at his sentencing hearing because, as his attorney said, "The question everyone has is why did he do it?"

Okay, so the blowjob in the Oval Office excuse seems reasonable enough Be that as it may, things are quite a bit worse than just spending 21 months at Club Fed – Yankton, South Dakota. Flanagan paid a fine of $1.05 million to the SEC and the real twist of the knife is this:

He resigned from Deloitte in 2008 amid an investigation into his trading activities. As part of a legal settlement with the firm, Flanagan gave up about $14 million in pension and deferred compensation, according to court papers filed by his attorney.

His gains from insider trading were $430,000. 

Former Deloitte executive sentenced to 21 months [CT]

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

A Deloitte career page

Confirmed: People Who Work For Deloitte Are Zombies

We always suspected there was something odd about people who work for Deloitte, now we know. They’re zombies! It seems Deloitte offered up a unique recruiting ad during yesterday’s long-awaited Walking Dead series finale. Excuse the potato quality of this screen recording, I’m on a Windows 3.1 machine. I’ll see if I can dig up […]

A Certain Big 4 Firm Gets Another Chance to Screw Up a State’s Unemployment Benefits System

We can’t fool you guys. Of course it’s Deloitte! Hopefully Uncle D will do a bang-up job this time for the state of Michigan, unlike some of the other state unemployment benefits systems it has handled (or mishandled) like Florida, Illinois, Colorado, and California. The Detroit Free Press reported on Nov. 15: Michigan’s Unemployment Insurance […]