Question
On January 16, 2008, the SEC charged two former employees of PricewaterhouseCoopers LLP with insider trading. According to the SECs complaint, Gregory B. Raben, a
On January 16, 2008, the SEC charged two former employees of PricewaterhouseCoopers LLP with insider trading. According to the SECs complaint, Gregory B. Raben, a former PwC auditor, and William Patrick Borchard, a former senior associate in PwCs Transaction Services Group, used their access to sensitive information about PwCs clients to allow Raben to buy stock ahead of a series of corporate takeovers. According to the complaint, Raben netted trading profits of more than $20,000 by buying stock ahead of public announcements disclosing the acquisitions and then selling his shares. Is there anything wrong with a CPA using insider information? Evaluate the actions of Raben and Borchard from an ethical perspective.
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