An employee of Institutional Shareholder Services (ISS) shared nonpublic voting data in exchange for $15,000 in concert tickets and $20,000 in meals. From 2007 through early 2012 an ISS employee provided nonpublic information on how over 100 ISS clients were voting on proxy ballots to a firm that gathers shareholder votes. ISS will pay The Securities and Exchange Commission $300,000 to settle civil charges and penalties. ISS neither admitted nor denied Securities and Exchange Commission allegations that it violated financial adviser rules designed to prevent misuse of non-public consumer information.
Senior Analyst Nikolai Fedotov, InfoWatch comments: «Such a long period of malicious insider’s work is surprising. I would rather say it causes the envy. 5 year of incessantly data compromising is really impressive even for a professional spy.
At the same time, the payment scheme raises eyebrows. Tickets for the shows and food stamps – it is something alien for civilization. Even in ancient Rome, they were free of charge for the citizens. Eather malicious insider didn’t realize that his actions were illegal or he was working for the idea, and moral encouragement were transferred in money in order to show him like a sellout».
