I just read this morning that Samuel Waksal, former ImClone’s former CEO, has been sentenced to 87 months to prison for his “crime” of insider trading. I am wondering what kind of signal that sends to real criminals (murderers, thieves, rapists, etc.). Is it possible for a murderer, under the right conditions, to be less than 10 years. US District Judge William H. Pauley said that the harm that Waksal wrought is incalculable. So if it is incalculable why has the judge ordered Waksal to pay more than $4 million in fines and back taxes and why Waksal has been sentenced to 87 months. Is not that some kind of calculus the judge made? My last question is if Samuel Waksal (and Martha Stewart) harmed ImClone’s shareholders, how come the fines that Waksal has to pay will be paid to the US Treasury (or the government) and not the shareholders? I always wondered this question when it comes to fines that insiders have to pay. All these cases are perfectly hypocritical. Politicians and justice authorities argue in that insiders harm shareholders (the poor little investors) and ultimately these poor little investors that need to be protected never see the money that supposedly insiders have taken away from them.
