First, the world was talking about Bernie Madoff. Last year, the big insider trading personality was Raj Rajaratnam. Now, we have Russell Wasendorf, who brings a small-town melodramatic storyline to the newest financial scandal.
Wasendorf, the owner of a brokerage in Cedar Falls, Iowa, called Peregrine Financial Group, attempted suicide last week amid allegations of fraud--he was found in his car with a hose running from the tailpipe. Later in the week, after being brought to a hospital to recover, he was arrested ... that is, after he admitted to embezzling at least $100 million.
In many ways, Wasendorf was a hometown hero, one of the big employers in Cedar Falls who was also known for his charity work.
It must be shocking to find out that someone who seems so kind and charitable is secretly engaging in fraud, right?
Surprising, definitely. But the news around Wasendorf has gotten us thinking in a somewhat unusual direction: What if he were a woman?
Are Men More Willing to Cheat (Financially)?
As odd as that question might sound, a new survey of financial service professionals found that almost a quarter of participants believed people in finance might sometimes "need to engage in unethical or illegal conduct in order to be successful."
The study asked these financial services professionals whether they'd consider insider trading if they stood to make $10 million and had no risk of getting arrested. 45% indicated that there was at least some chance they'd do it!
Among those who said they'd do it, 19% of male financial services professionals were willing to engage in insider trading under those circumstances, compared to 10% of females.
Does that mean women are more honest?
There could be a reporting bias in this study--in other words, are men more willing to cheat, or are they more willing to admit that they'd cheat?
All the same, even if women are secretly just as willing to engage in insider trading but more hesitant to admit it to researchers (and themselves), that still indicates to us that they place a social premium on being perceived as "honest."
As for whether that actually impacts their actions ...
The Most Notorious Insider Trading Scandals
Perhaps the most notorious recent inside trader is Raj Rajaratnam, who was sentenced to 11 years in prison, a record sentence. Last year's crop of inside traders also included Major League Baseball player Doug DeCines.
In all, the SEC brought at least 65 inside trading actions in 2011 and the beginning of this year ... but of those the regulatory body holds up as examples in its documentation, none of the ringleaders are women.
Certainly, women do corrupt things, too. There's Martha Stewart, and this woman who apparently got insider trading secrets through pillow talk with her boss. And, definitely, part of the reason there are so few female fraudsters is in large part because there are way fewer women in positions of power to pull off a huge Madoff- or Raj-esque scheme.
But as we applaud more and more women rising to positions of power, we wonder--would more women commit fraud if only they had the opportunity?
What do you think--is it a question of men simply having more opportunity to commit fraud? Is it social norms that hold women back from using fraud to make money? Is it something else?
LearnVest is the leading personal finance site for women. Need help managing your money? Our free Money Center will help you create a budget. Our free bootcamps will help you take control of your money, cut your costs or get out of debt. And our premium financial plans--managed by LearnVest Certified Financial Planners--can help you chart a course for the future you want.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.