Onyx Pharmaceuticals, Inc. (ONXX), Amgen, Inc. (AMGN): Why Getting Rich Quick Doesn’t (Always) Pay

On Wednesday, July 3, the SEC announced that it had frozen the assets of the traders. Michele Wein Layne, director of the SEC’s Los Angeles office, referred to the perpetrators as “suspicious foreign traders.”

Not only did the SEC freeze the assets of the villains, but the agency is pursuing further action to require the unknown traders to “disgorge their ill-gotten gains” (I love that dramatic wording), pay interest, pay financial penalties, don’t do it again, and walk the plank. OK — I made the last one up, but you get the picture.

Unfortunately, we still don’t know who these suspicious foreign traders are. Any good soap opera leaves the viewer without all the answers, though. Some element of mystery must be left in the air.

Moral to the story
Unlike many of the soaps on TV, there actually is a moral to this story: Getting rich quickly doesn’t (always) pay. Sure, our villains made millions in just a few days — but they won’t get to enjoy their riches.

The SEC is always watching out for unusual trading patterns. Anyone who thought that they could buy way out-of-the-money options just before Onyx revealed the Amgen, Inc. (NASDAQ:AMGN) offer and get away with it weren’t thinking very clearly.

This same kind of story line has been repeated several times before. Just like in the soap operas.

The article Why Getting Rich Quick Doesn’t (Always) Pay originally appeared on Fool.com is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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