Deloitte partner jailed in the US due to insider trading
In the United States former Deloitte partner Thomas Flanagan (65) has been convicted to 21 months in prison and a $100,000 fine for insider trading.
Flanagan has worked 38 years for the consulting firm, in his last role as vice president "Clients and Markets". Flanagan was accused by supervisor SEC of violating the independence rules for auditors and consultants 71 times between 2003 and 2008.
He traded in shares and options of Best Buy, Sears Holdings, Walgreen, Motorola and five other audit clients of Deloitte, while simultaneously being their consulting partner at Deloitte. In all cases, Flanagan had prior knowledge, including quarterly reports, data acquisition and sales reports.
According to the U.S. State Department of Justice Flanagan earned a total of $420.000 with his actions. Before his conviction he expressed regret in the media: "It was stupid, it was arrogant and it was wrong. It was so wrong".
