Felipe began working with a small engineering firm in 1998. In 2000, the firm decided to go

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Felipe began working with a small engineering firm in 1998. In 2000, the firm decided to go public, allowing Felipe to take advantage of more than $100,000 in stock options per his employment contract. Later that year, Felipe entered a Yahoo! financial chat room and posted a bogus financial report detailing a proposed merger between his engineering firm and a publicly traded textiles firm. The fake report caused the engineering firm’s stock price to rise 36 percent, at which point Felipe sold his shares. What are the consequences of Felipe’s actions?

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