Overview of the Imclone case

Overview of the Imclone case The ImClone case is about insider trading. Here is the background information regarding the case. Sam and Harlan Waksal started ImClone in 1984. From there, in 1993, the brothers purchased the rights to the molecule C225. The molecule was discovered by Dr. John Mendelsohn at the University of California San Diego. C225 is an anti-cancer drug that can distinguish between cancerous cells and healthy cells. C225 would be able to shrink cancer to a surgically removable size. C225 would later be given the brand name Erbitux. In May of 2000, Sam Waksal presents the case of Shannon Kellum at the American Society of Clinical Oncology. It was demonstrated that grapefruit sized tumors would be shrunk to the size of peas and then surgically removed. A year later in September 2001, Bristol-Myers Squibb Co. agrees to buy a 20 percent stake in the company and for the rights to sell the cancer drug Erbitux in the U.S. and Canada. The tender offer valued ImClone at $70.00 per share. On December 12 of 2001 ImClone and Bristol-Meyers meet with FDA on Erbitux, their last meeting with regulators before receiving official news the FDA would not review Erbitux. The FDA had concerns about Erbitux. December 26, 2001 Waksal received a tip from his brother Harlan, that the FDA would reject the Erbitux application and the tried to sell 79,797 shares of ImClone. He was unable to complete the sale due to two different brokerages refusing to issue sale orders. The next day family and close friends of Sam Waksal sell almost $3 million worth of stock, including Sams daughter Aliza and home style guru Martha Stewart, a friend of Sam Waksal. The stock closes at $58.30. On December 28, 2001, ImClone announces that the U.S. Food and Drug Administration reject the application for Erbitux, saying the drug did not satisfy requirements. The stock begins a precipitous decline taking it down to the high teens. On Jan 25, 2002, the U.S. Securities and Exchange commission and the Justice Department launch probe into ImClone and Waksal. Feb 14, 2002 Waksal notifies the Securities and Exchange Commission for the first time of 50 trades he made in ImClone stock going back as far as 1992. These transactions should have been reported within months. A few months later, Sam Waksal is arrested on charges he illegally acted on insider information in selling ImClone and by telling family members to do the same. By August Sam Waksal, already charged with insider trading, is indicted for obstruction of justice and bank fraud in a case that has rocked investors confidence. Waksal is accused of pledging ImClone securities he no longer owned to secure a $44 million loan and forging the signature of ImClones general counsel to fool the bank into believing he still owned the securities. By August 14, 2002, ImClone sued Sam Waksal, claiming Waksal ordered the destruction of documents that may be important in a government investigation into the company. The Imclone scandal is one of many scandals that show what can happen to a company if wrong and unlawful decisions are made. In this paper I will identify and define the ethical problems violated by certain employees at Imclone, which in part led to the scandal and imprisonment of several people. The first ethical problem and most obvious one to identify in this scandal is insider trading. Illegal insider trading involves, â€Å"trading in a security (buying or selling a stock) based on material information that is not available to the general public† (Reh, 2010). This specifically means having certain information that the general public does not have either from inside sources or by being an insider. This would give people privileged information in order to help them make a financial decision. It is prohibited by the Security Exchange Commission because, â€Å"it is unfair and would destroy the securities markets by destroying investor confidence† (Reh, 2010). The stock market is driven by fair practices and confidence that the â€Å"man on the street† can have access to the same public information a corporate analyst has access to. The following examples describe instances of insider trading that have been reported to the SEC: â€Å"Corporate officers, directors, and employees who traded the corporations securities after learning of significant, confidential corporate developments† (Astarita, 2010). â€Å"Friends, business associates, family members, and other tippers of such officers, directors, and employees, who traded the securities after receiving such information† (Astarita, 2010). â€Å"Other persons who misappropriated, and took advantage of, confidential information from their employers† (Astaria, 2010). These are just a few examples of illegal insider trading and similarly describe what took place at Imclone with CEO, Sam Waksal. Sam discovered inside information that would lead to a drop in the companys stock. Now, knowing and acting are two different things when it comes to insider trading. It is understood that certain people inside a company will know valuable information as regards to its stock going up or down. The criminal and unethical behavior comes when that person tells his friends and family members about that information. This is exactly what Sam Waksal did and this is what got him and the company into some major trouble. Most public companies will limit the number of people who have access to the inside information. This is done to decrease the likelihood of insider trading. However, even if you have a small number of people on the inside, it will ultimately come down to the individual and the ethical standards to which they live their life by. It only took one man to start the insider trading scandal, and thats not even all he did. Two other ethical problems that were indirectly related to Imclone involved Sam Waksal and his own personal ethics. His attempts at forgery and tax fraud did not hurt the company per sea, but helped confirm the type of unethical CEO that he was. Forgery can be defined as, â€Å"the act or legal offense of imitating or counterfeiting documents, signatures, works of art, etc. to deceive† (Websters, 2009). This basically means falsifying something with the intent of misleading others so that you may appear to have done something truthful. With regards to ImClones CEO, it was reported that Sam Waksal forged a signature of the companys general counsel, John Landes, in a statement pledging ImClone stocks in order to obtain money in loans from Bank of America. This was†¦. Fraud can be defined as, â€Å"something said or done to deceive† (Websters, 2009). Another definition, and one that more closely identifies personal ethics defines fraud as a, â€Å"person who deceives or who is not what he or she pretends to be; a cheat† (Websters 2009). Regarding Sam Waksals personal morality, he failed to pay sixty million dollars in personal income taxes on certain stock grants given to him by ImClone. He pretended for a long time to have paid these, when in reality he had not. It was only a matter of time until his fraudulent actions finally caught up with him. As you can see, any one of the previous ethical problems can bring companies to scandalous ruin. What we see in all three of the problems is one man who decided to behave unethically. That is all it takes and that is why ethics is so important; especially for the men at the top. Imclone employees and associates are clearly in violation of numerous laws and multiple ethical principles. One would think that a scandal involving accounting fraud and insider trading would not only damage a company initially, but result in long term detriment to the organization. There is a significant and gradual decline in the â€Å"shame on you† perception of the general public, as is evidenced by the most recent financial transactions of the company. Even with the barrage of media attention to the Imclone scandal, ethical attitudes appear to change over time. Martha Stewart, the homemaker tycoon, was charged with and convicted of insider trading involving Imclone. She held numerous shares of Imclone stock and sold all holdings the day before the announcement from the Food and Drug Administration (FDA) announced that they would not approve Imclones drug, Erbitux, for cancer treatment. Predictably, shares of Imclone stock dropped significantly the day of the announcement. Martha Stewart sold all shares at fifty eight dollars per share and saved a predicted $40,000 by selling all holdings before the fall. Stewart claimed that she had a â€Å"verbal order† to sell all holdings if the stock dropped below $60 per share. However, one day before the announcement from the FDA, while she was traveling on her charted jet to Mexico for vacation, Stewart placed a phone call that lasted approximately eleven minutes to her stockbroker. Shortly thereafter, he sold all of her holdings. The next day the announcement was made and the rest as they say is history. Martha Stewart, not Imclone, seems to be the one who received the most lasting negative impact from this scandal. MSO stock traded at a high of about $16 per share prior to the insider trading scandal. Once Martha Stewart was indicted and later convicted, MSO stock dropped to less than $8 per share. Currently, MSO stock is trading around $5 per share. In 2002, Imclone shares fell as low as $5.85 per share. Imclones drug Erbitux was eventually approved and posted sales of 1.3 billion in 2007. In 2008, Bristol-Myers Squibb Company tendered an offer to purchase Imclone for $60 per share. Ironically, this is almost the same price point where Martha Stewart dumped her stock before the fall in 2001. Eli Lilly tendered an offer in 2009 for $70 per share, which totaled approximately $6.5 billion. The offer was approved and Eli Lilly purchased Imclone. Multiple players crossed ethical boundaries during the Imclone scandal. These include individual investors (Stewart), Imclone senior leadership and stockbrokers. They knew what they were doing before they did it and they got caught. Martha Stewart is one of the principal reasons that this case got so much media attention. The Imclone scandal alone was not really that newsworthy nor was it much different than the multitude of other financial scandals during the early years after 2000. We have Mrs. Stewart to thank for bringing this to the forefront of America. For the business world, and the American Public in particular, the Imclone ordeal serves as an example of deceit, greed, insider trading and scandal. It also proves that if you knowingly choose to break the law, and if you get caught, the government will prosecute and you could serve time in prison. If you do not think it could happen to you, just ask Martha Stewart.

Case study Essay

This paper addresses the principles of Choice Theory with the origin of Classical Theory, as well as the Trait Theory which originated from the Positivist Theory. It establishes the differences between the two criminological theories. The defining characteristics are addressed to help the reader understand the relation between the two as well. The distinctions and descriptions are supported by various scholarly authors, and will be listed below. The ideas of the Choice Theory originated from the principles and ideas of the Classical Theory. Back in the late 1700’s it was the understanding of the criminologist, that criminals would typically assess the possible benefits of conscious and rational choice before committing a crime. Choice theory establishes a mindset focused on the benefits they will render by becoming involved in a criminal act over the possibilities of punishment or rather conviction of the crime in question. Classical Theory was developed by Cesare Beccaria, an Italian social thinkers as stated in the text (pg. 84) after which, about a hundred years later the idea of Positivist Theory was developed and became the focus of the criminologist. Although the Positivist Theory made an appearance within the study, not much longer after they shifted back to the original thoughts of Cesare Beccaria. As the years went on Beccaria original idea of Choice Theory developed into something greater and more advanced in its description. According to one article â€Å"Rational Choice Theory, Crime Control Policy, and Criminological Relevance† states it is matured into a more comprehensive perspective that ultimately appreciates the complexity of the nature of criminal behavior. Within this crime theory, suggest that criminals are typically not fearfully of breaking the law because the excitement and thrill of the crime is far too enjoyable for these criminals. However if the criminal believe the punishment was too severe they will not engage in or every think to repeat their criminal offense. The notion that physical and mental traits distinguish a criminal from another is the principles of the Trait Theory. These criminals commit crime based on environmental effects as well the diet or food in which they may consume. It originated from the Positivist Theory that rejects the idea that the criminal makes a conscious and/or rational choice to commit a crime; but rather their character differences is what constitutes their criminal behavior. These differences suggest the criminologist conclusion of deviant member within society and helps them identify them as such. The idea of this theory suggest that criminals have a distinct characteristics that causes them to commit a crime but it is in fact an unconscious act because it a personal trait in which only few possess. It is easy to distinguish the difference between the Choice theory of Classical criminology and the Trait Theory of Positivist criminology. These differences include the free will of the classical criminology philosophy where the criminal calculates or determines if the crime is worth the risk of being convicted, whereas positivist criminology philosophy indicates the criminal is subject to external forces causing them to commit a crime. Choice theory suggest that the solution to this philosophy is any form of deterrence. And the solution for Positivist criminals is also some form of intervention. Classical criminology places importance on the idea of agency verses positivist places it concern on structure. Classical criminals must be punished whereas positivist criminals need rehabilitation. The similarities include they are both criminals act that need to be addressed to prevent them from occurring. Whatever form to therapy, rehab or intervention that needs to take place has to occur. Another similarity is the time it was founded. Both theories were established around the same time era.

Russia Essay Topics Guide

Russia Essay Topics Guide Where to Find Russia Essay Topics You should first ascertain the reason behind your essay, before you may write persuasive content about it. Clearly, you shouldn't purposely select a topic that will bore your audience. You're an actual topic enthusiast! When picking out persuasive essay topics to write about, it would be better to stick to your very own personal opinions so you are going to have a definite idea on what things to put in it. Most issues can have essays on all the aforementioned questions. Qualities of an excellent persuasive essay topic The topic ought to be specific. It's important to understand that essay topics are just basic ideas that leave you pondering an idea that might be a huge deal to another person. Possessing no thought of the persuasive essay topics, you just do not understand what to write about. Persuasive essay topics don't always must be of a significant nature, you can write about things that are related in your life. Argumentative essay topics are so important since they are debatableand it's critical to at all times be critically contemplating the world around us. Russia Essay Topics Secrets There are some basic guidelines to follow as a way to be in a position to compose a very good persuasive essay. So far as essay structure goes, a 4 or 5 paragraph essay based on the number of points you might want to argue is a superb start. There are just a few things that define whether an essay you're working on is going to be a good one. Just stick to the guidelines stated above, and you'll be well on your way to writing a gre at persuasive essay. Such essays shall have a good deal of quotations, based just on facts and laws, and show no more than the actual picture of the circumstance. Persuasive essay is also called the argument essay. Persuasive essays share a good deal of resemblance with argumentative essays. Every argumentative essay ought to have an opposing view which can help you to prove you're right. Whatever They Told You About Russia Essay Topics Is Dead Wrong...And Here's Why Schools should eliminate class projects since they're useless. Parents must be at fault for providing a wholesome diet. Students ought to be permitted to pray in school. They always go online when they need to find something. The Do's and Don'ts of Russia Essay Topics To begin with, if you're arranging a persuasive speech, you ought to think about a topic that could create mental pictures in the minds of your audience. Our life is about words. It is preferable to search online since it will save yourself a plenty of time. All peo ple ought to be allowed to receive free high education. Utilize your opportunity to persuade the reader your way of thinking is the sole right one. Next, you must think about the method on how you wish to relay it to your readers. In most instances, you want to think of a topic that will enable other people to understand your perspective, and telling them to feel that what you write is true. You may trust us to offer expert aid for many of your academic writing needs. A Secret Weapon for Russia Essay Topics You may find there's a compelling argument for learning another language after all! To choose which subject you're likely to discuss, it's crucial to see the complete collection of good persuasive speech topics from the special area of study. You should make sure that you're very interested in the topic before it is possible to persuade others about it. Therefore, you've got to discover enough substantial evidence for the specific topic. Students need to be careful about posting on social networking. They are used to the fact that their professors give them the assignment's topic. In such a situation, a student must pick an acceptable topic to write about. Unfortunately, not all students can find with excellent suggestions for their projects. Details of Russia Essay Topics Year round school isn't a good idea. The range of body paragraphs will mostly be based on the amount of your paper. Also, utilize all the scratch paper you demand. How to earn a research paper interesting.

Into the World There Came a Soul Called Ida - 1000 Words

The painting, Into the World There Came a Soul Called Ida was painted by Ivan Albright in 1929-1930. Albright gave the painting to the Chicago Art Institute as a gift in 1977. The painting depicts the sadness of a once young and vibrant woman, facing the realities of getting old. Even though she is beautiful in her own way, the sadness on her face and aging body portrays a grim and depressed woman. The painting is a large painting it is almost five feet tall and four feet wide. It is an oil painting on traditional canvass. The color choice is very dark and gloomy. It serves the purpose of putting the viewer in a somber mood. From the first glance you can tell that this is a sad setting. To some viewers Ida might bring a feeling of†¦show more content†¦The two most obvious things to me that stand out in this work are the texture, and the strong meaning behind the subject matter. Albright was known to be very meticulous in his detail. He was known to have used hundreds of different brushes for a project, some with as little as one hair on them for the finest details, such as the hair strands on Idas comb. This is all evident in the texture of everything depicted in the painting, but particularly in the detail he paid to Idas skin. The bulging shape of her legs and face depict far more than the effects of aging alone. They show the decay of one’s body that is pre pared to accept death. Albright was so deliberate in his painting, for example he would paint for roughly five hours a day, in that time he would only cover one half of a square inch. Once satisfied he would never return to that spot and make any changes (Hubbard). While everything else in the painting seems to signify death, or doom, the choice of lighting is interesting. It seems to be coming from above from the heavens giving her image a certain aura about her which might signify the possibility of redemption or salvation. The lighting also draws Ida out towards the viewer letting the viewer know that this is the main subject (Donnell). Albright was so attracted to the great painters of Northern Europe; he tried to emulate their work habits in every possible way. For exampleShow MoreRelatedHenry David Thoreau1567 Words   |  6 PagesInto the World There Came an Artist Named Ivan. In the words of Henry David Thoreau, â€Å"This world is but a canvas to our imagination†. This statement speaks to all of mankind, in that, art can be traced back to thousands of years ago. For centuries people have put their whole lives into creating art, hoping that they would pass on their views while still creating something different, interesting, and unique. Generating from these ideas was as artist named Ivan Albright. Though his pieces appearedRead MoreThe Night - Original Writing1391 Words   |  6 Pagesmasked the girl’s sporadic sighs. 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