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At Lexverify, we are on a mission to make risk prevention as easy as spell checking. As we continue to grow, we are keen to have the right people with us on our journey.
With this in mind, we are pleased to announce that Tom Hardin (also known under the alias ‘Tipper X’), one of the most prolific informants in securities fraud history, has joined Lexverify as an Advisor.
Having Tom join us highlights our current focus on increasing our awareness and educating the market that it is possible to go beyond reliance on traditional risk and compliance methods to ensure your business is compliant with the necessary laws and regulations.
Tom sees the true value and importance of Lexverify and this is how this relationship came to life.
“Lexverify isn’t just another compliance tool—it’s a safeguard against your worst-case scenario. In an environment where one mistake can bring everything crashing down, Lexverify’s AI-driven platform is the ultimate defence. It doesn’t just react; it anticipates risks and keeps you a step ahead. For anyone who’s been on the wrong side of a compliance misstep like I have, Lexverify is the key to staying safe, confident, and in control. It’s more than protection—it’s your lifeline.”- Tom Hardin
We had the pleasure of catching up with Tom to hear more about his journey and what he is up to these days.
1. Who is “Tipper X”?
I am Tipper X, the alias given to me when I became an informant for the FBI during one of the largest insider trading investigations in history. During my time as a hedge fund analyst, I became entangled in illegal trading activities. The FBI’s sweeping investigation into insider trading within the hedge fund industry resulted in over 80 individuals being charged, and as the youngest among them, I made the decision to cooperate. My cooperation was pivotal in exposing some of the industry’s most influential figures. It was a path I never anticipated, but it became the course of my life. Today, I share my story to help others recognize how easily one can be drawn into unethical behavior, often without fully understanding the consequences until it’s too late.
2. What sparked your interest in Lexverify?
My interest in Lexverify stems from my own experiences and the lessons I learned about compliance and ethics in the financial industry. After going through the insider trading investigation and seeing firsthand how easily people can rationalize unethical behaviour, I became passionate about finding better ways to prevent compliance violations before they occur. Lexverify’s approach of using AI and behavioural science to identify potential issues early on really resonates with me.
3. How did your experience cooperating with the FBI as an informant change your perspective on compliance and ethics?
Cooperating with the FBI was a transformative experience that completely changed my perspective on compliance and ethics. It made me realize how easy it is to cross ethical lines when you’re in an environment where that behaviour seems normalized. I saw how destructive insider trading and other violations can be, not just to individuals but to the integrity of the markets as a whole. It instilled in me a deep commitment to promoting ethical behaviour and strong compliance cultures in the financial industry.
4. Is there anything that would have stopped you from making that first trade?
Looking back, I don’t think anything would have stopped me from making that first trade at the time. I thought I was a good person who would never cross an ethical line. However, if I had had a proper mentor who I was sharing my experiences with, they likely would have recognized the danger signs and strongly advised me against it. It would have been much harder for me to override someone I respected telling me not to do it. But acting in isolation, it became easy to rationalize based on what I saw others doing around me.
5. Given how the world’s evolved over the past 2 decades, do we need to rethink how we approach Risk & Compliance?
Absolutely. The world has changed dramatically in the past 20 years, especially with advances in technology and the increasing complexity of financial markets. We need to rethink our approach to risk and compliance to keep pace. Traditional methods of policy-based compliance and periodic training are no longer sufficient. We need more proactive, data-driven approaches that can identify potential issues in real-time and nudge people toward ethical behaviour. The human element is still crucial, but technology can play a much bigger role in supporting good decision-making.
6. What role do you think technology can play in preventing insider trading and other compliance violations?
Technology can play a huge role in preventing insider trading and other compliance violations. AI and machine learning can analyse vast amounts of data to detect patterns and anomalies that humans might miss. Real-time monitoring tools can flag suspicious activity as it happens. And behavioural analytics, like what Lexverify is doing, can help identify individuals who may be at higher risk of violations before they occur. Technology can also make compliance training more engaging and effective through personalization and gamification, using data to identify areas where additional guidance is needed, and empowering employees with tools to make better decisions in real-time. However, the human element remains critical. Technology should be used to augment and support human decision-making, not replace it entirely. We need compliance professionals who can interpret the data, understand context, and make nuanced judgments. The goal should be to use technology to create a culture of integrity, not just to catch wrongdoing after the fact. Ultimately, preventing insider trading and other violations requires a holistic approach that combines cutting-edge technology with robust human oversight, ongoing education, and a strong ethical culture. By marrying human and technological capabilities, we can create more effective compliance programs that address both the letter and the spirit of regulations.
There are a lot of exciting things that we are working on together for 2025. Make sure to follow our LinkedIn to be the first to hear about these developments.
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