According to an explosive complaint recently filed with the Securities and Exchange Commission and obtained by The NY Post, employees in the back alleys of Wall Street have been secretly trading valuable tips on shareholders’ votes in a bid to influence the outcome of lucrative corporate maneuvers, like mergers and executive pay plans.
Ground Zero for the improper leaks is ISS, the nation’s largest shareholder advisory firm, according to the whistle-blower.
ISS, which is owned by publicly traded data provider MSCI Inc., advises large shareholders, such as mutual funds and pension funds, on how to vote their shares, and also helps them cast their votes through an electronic platform known as ProxyExchange.
According to the complaint, a midlevel employee in ISS’s Boston office has been using his access to shareholders’ voting data to obtain cash and gifts from so-called proxy solicitation firms, which act as hired hands for companies seeking to win shareholder approval for their corporate activities, like mergers.
The alleged rat denied the allegations when reached by The Post at his office on Friday…
http://www.nypost.com/p/news/business/fraud_by_proxy_tT8SeaWrBBCVkJePZRTQQM
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