Violation of conduct or law?(improper trading at Transamerica of Canada)(Brief Article)(Statistical Data Included)

Pensions & Investments, August, 2000

When is improper trading that cost shareholders some $5 million and caused the firing, suspension or review of 56 employees not a crime? When it is a violation of a company's code of conduct. But does justice go far enough in leaving the matter to the organization to decide? The scale of the scandal is huge in terms of the number of people involved, all working for a newly acquired unit of Transamerica Life Insurance Co.

of Canada in Toronto. It follows the unprecedented indictment of 120 people in June on charges brought by the U.S. Department of Justice and the Securities and Exchange Commission. The scandal in Canada is a separate violation and jurisdiction. But improper activity might occur at any fund and victimize any investor. Transamerica, a unit of...

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