By now, you should know one of my favorite strategies involves following the “smart money” and piggybacking off their best ideas.
After all, it’s been responsible for some of my best percentage winners in 2020.*
Of course, when it comes to uncovering these potential trades… I come across a lot of shady activities.
Case in point — the insider trading activity in ARIAD Pharmaceuticals just a few years ago.
You see, you never know who has access and is trading off non-public information…
With ARIAD Pharmaceuticals, it just so happened to be the son of a board member at the time who doled out information to his good buddy.
I want to draw back the curtain and reveal how these “insiders” think, and why it’s of the utmost importance to follow the paper trail.
How This Board Member’s Son Shared Secret Information About ARIAD Pharmaceuticals
Some people’s favorite part of the day is coming home. Kicking up their feet, sipping a cold one, and talking about their day with family.
Under normal circumstances, this ritual would be normal, safe even.
For the head of Lavidas family…
Let’s just say this is one dad who should have kept his work life far out of the grasps of his weasel-like son.
Telemaque Lavidas is the son of the high-profile businessman Athanase Lavidas. And In 2013 Athanase also sat on the board of directors for ARIAD Pharmaceuticals, Inc.
ARIAD had developed and was marketing its drug Iclusig for leukemia, and three BIG catalysts were on the horizon for this company.
Along the way, Telemaque would become aware of these happening by way of his dad.
By his father sharing this secret information, he gave the finger to his duties and confidentiality at Ariad.
But it would not be the son that traded on this inside info.
The Board Member’s Son’s Dirty Deed
Telemaque would pass on these illegal tidbits to his buddy Georgios Nikas.
Nikas who conveniently held a large amount of Ariad Securities. This with a sprinkle of insider trading allowed Nikas to trade ahead of three of Ariad’s public announcements making millions in dirty profits.
In October 2013, Athanase discovered that the FDA had raised concerns over Iclusig. It seemed that this newly approved cancer drug caused some adverse health issues for its patients.
Athanase shared this information with his son, who ran screaming to Nikas.
Nikas traded in his long position holdings in Ariad and flipped short.
When Ariad announced its drug Iclusig had patient safety issues and the stock dropped over 65% … Nikas made a whopping $3.2 million in profits. Avoiding a loss of $800K by being privy to the news beforehand…. all while the average Joes had to take it on the chin.
Deep in the holiday season of 2013, Athanase learned that Ariad was making great strides toward getting Iclusig back on the market.
Iclusig was making a comeback and Athanase shared this good news with his son. Who once again passed this secret info to his friend.
At the end of 2013, Ariad announced Iclusig was back in black and its stock started climbing….
And Nefarious Nikas made $1.3 million in tainted profits.
In the hot, hot summer of 2015, some even hotter news fell Athanase’s way. He found out that another pharmaceutical company was taking over the reins of the Ariad.
Again, this covert news made its way down the grapevine to Nikas.
And Nikas went shopping. ─── buying up Ariad stock based on this hot tip.
Then in August when the takeover went public Nikas shares soared. Nikas made more than $2 million in profits.
But the insider trading doesn’t end here.
Like any juicy secret, the juicier it is the more likely it will be shared.
And Nikas was spilling this tea to multiple stock traders.
Total Nikas and his trader connects made over $15 million off the insider information Telemaque Lavidas shared with Nikas.
But there would be a dramatic turn of events.
See Restaurateur Nikas would be exposed as 1 of the 6 members of a GLOBAL insider trading ring. A trading ring that made tens of millions of dollars illegally trading on insider information.
Some of which was the very information Telemaque shared with Nikas.
Once this ring was exposed the charges started to stack up… Nikas received 31 charges all to his greedy self.
So, what did Telemaque get out of this….
The prosecution’s theory during the trial was that Telemaque helped Nikas in exchange for funding for his snack company Mediterra.
The DOJ reports that he stole the insider information from his father.
We can only guess if he pumped his dad for insider info over family night. Or was its simple small talk that Telemaque decided to capitalize off.
Telemaque Lavidas has been sentenced to 1 year AND 1 day behind bars for his role in this insider trading scheme.
Listen, these players leave clues behind in the market… and if you’re able to put the pieces of the puzzle together it’s possible to piggyback off their ideas.
You can find out all about how the “smart money” moves in this exclusive training guide, Dollar Option Trader.
*Results presented are not typical and may vary from person to person. Please see our Testimonials Disclaimer here: https://ragingbull.com/disclaimer