Nate’s Notes 245: From Insider Trading to FBI Informant | Tom Hardin aka Tipper X

Tom’s experience reads like a case study in an ethics textbook. Tom felt like he was on the outside looking in. So when given an insider tip, he traded on it. And then when his boss looked the other way, while simultaneously applying pressure, Tom started rationalizing his behavior. After all, he was trying to be a good dad and husband, which made him feel like he had moral credits to spend on illegal trades. But when the FBI came knocking, the game was up. Tom then agreed to cooperate rather than go to prison. Ultimately, he turned his scars into service, contributing to an investigation that resulted in dozens of guilty pleas.

In summary, our ethical failures rarely come out of the blue, rather they are the predictable result of surrounding ourselves with the wrong people and making seemingly small ethical compromises.  It’s a simple idea. Please take it seriously.

Tom Hardin Bio:

Tom Hardin, also known as Tipper X, was a rising Wall Street analyst when he traded on a few insider tips leading to the FBI knocking on his door. He decided to cooperate with the FBI, and became a key informant in Operation Perfect Hedge, the largest insider-trading investigation in U.S. history. He is also the author of the book, Wired on Wall Street.