All Insider Trading articles – Page 4
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Newman Decision Leads to Rare Loss for SEC in an AP
SEC Administrative Law Judge Jason Patil dismissed an insider-trading case against a former Wells Fargo trader, noting that the SEC failed to prove that the person who allegedly tipped the trader did so for a personal benefit, as required by the Second Circuit’s disruptive opinion in U.S. v. Newman. Patil ...
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Plan B? Feds Pursue Insider Trading Charges Under SOX
An unusual insider trading prosecution brought under a provision of SOX (rather than Section 10(b) of the Exchange Act) suggests that prosecutors are seeking a "Plan B" in the wake of the Second Circuit's disruptive decision in U.S. v. Newman.
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‘Outsider Trading’ Crackdown Announced
The Justice Department and SEC both announced high-profile cases on Tuesday against a large group of hackers and traders. Over a five-year period, the group allegedly carried out a scheme that involved hacking more than 150,000 confidential press releases from the computer networks of Marketwired, PR Newswire Association, and Business ...
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Former Law Firm I.T. Employee Sentenced to Two Years for Brazen Insider Scheme
Last week, a former I.T. professional at law firm Wilson Sonsini Goodrich & Rosati, received a two-year sentence for a particularly brazen insider trading case scheme -- a scheme that foolishly ignored a huge “flashing stop sign,” according to the sentencing judge.
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U.S. Asks Supreme Court to Review 'Erroneous' Newman Decision
Facing an August 3 deadline to appeal the Second Circuit's Newman decision, the United States today filed a petition for a writ of certiorari with the U.S Supreme Court. The U.S. argued that the Second Circuit's decision "erroneously departed" from the Supreme Court’s decision in Dirks v. SEC.
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SEC Wraps Up 'Alcoholics Anonymous' Insider Trading Case
Last week, the SEC announced the final resolution of an insider trading case that flowed from the most unusual of betrayals: information allegedly misappropriated from a senior executive who was confiding in a someone through their relationship at Alcoholics Anonymous.
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SEC Alleges Loose Lips at Law Firm Led to Insider Trading
Yesterday, the SEC filed a second insider trading case alleging that non-public information was leaked by a legal assistant whose law firm was advising on a merger involving Harleysville Group, Inc.
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Judge Rakoff Finds Newman Case Not Applicable to Tipper Liability
Last week, Judge Jed Rakoff denied Rajat Gupta's motion to vacate his conviction, finding that the landmark Newman case impacts tippee liability, not tipper liability.
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SEC, Secret Service Reportedly Investigating 'FIN4' Hackers
The SEC and the U.S. Secret Service are reportedly separately investigating a group of hackers called FIN4. In December 2014, cybersecurity firm FireEye Inc. released a report stating that FIN4 that was hacking the email accounts of top executives, lawyers and others in an effort to obtain non-public information about ...
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Former KPMG Partner Scott London out of prison, back to work
Scott London—the former KPMG partner who pleaded guilty to insider trading in June 2013 and was sentenced to serve 14 months in prison in April 2014—is out of prison and back to work. London is now employed as the assistant to the CFO of a computer company.
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Australian Stock Trader Tries Out 'Costanza Defense' in Sentencing Hearing
Australian stock trader facing sentencing for insider trading channels his inner George Costanza ("Was that wrong? Should I have not done that?")
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UK Insider Trader Returned to Prison For Failure to Repay Illegal Profits
In the UK, insider trading prosecutions are pretty rare. Indeed, there had never even been a criminal insider trading case in the UK until 2009, and to date there have only been a total of about two dozen criminal convictions for insider trading in the UK. Pardip Saini is one ...
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Judge Rakoff's New Securities Law Focus: Re-Defining Insider Trading
Image: Having already left his mark on how the SEC handles deferred-prosecution agreements and other settlements, U.S. Judge Jed Rakoff now appears to be focused on another key securities enforcement issue: the definition of insider trading. More inside.
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Batista Insider Trading Case: From ‘Landmark’ to ‘Turmoil’ to ‘Farce’
The already-bizarre Brazilian insider-trading case against former billionaire Eike Batista “desended into farce” this week when the presiding judge was charged with embezzling more than $360,000 in seized money to buy himself a bulletproof Land Rover and an apartment. Prosecutors also claim that Judge Souza destroyed documents pertaining to the ...
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Second Circuit Denies DOJ Petition for Rehearing in Newman Case
Today, in a ruling that may have significant consequences, the Second Circuit rejected the DOJ's petition for a rehearing in the landmark U.S. v. Newman insider trading case. The DOJ filed a "Petition for Panel Rehearing and Rehearing En Banc" in the Newman case on January 23, which was supported ...
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Brazil's Landmark Insider Trading Case Derailed as Seized Cash Now Missing
When we last checked in on the Brazilian insider trading case against former billionaire Eike Batista, the case was, by all accounts, in "turmoil." As I discussed here, the criminal prosecution against Batista -- a landmark case that may make him the first person ever sent to prison in Brazil ...
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Congressman Lynch Offers First 'Post-Newman' Bill Banning Insider Trading
As I wrote here last month, the Second Circuit's decision in U.S. v. Newman has resulted in a flurry of recent pleas from people such as Mark Cuban, James Stewart and others for Congress to, finally, define the law of insider trading. On Monday, Congressman Stephen F. Lynch (D-Mass.) ...
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Level Global Co-Founder Files Lawsuit Against Prosecutors, FBI Agents
Remember back in November 2010 when the FBI launched a series of raids on hedge funds including Level Global Investors LP and Diamondback Capital Management LLC? These raids ultimately led to the convictions of Level Global co-founder Anthony Chiasson and Diamondback Capital’s Todd Newman on criminal insider trading charges. Shortly ...
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Decades Later, the Law of Insider Trading Remains Elusive and Undefined
Over a decade ago, in August 2004, I watched the high-profile Martha Stewart insider trading matter play out as federal prosecutors decided not to charge Stewart with the crime of insider trading, the SEC did pursue a civil lawsuit against her, and the rest of the U.S. seemed to scratch ...
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'Extraordinary' Cooperation Allows SAC Capital Defendant to Avoid Prison
Yesterday, U.S. District Judge Jed Rakoff sentenced admitted insider trader Noah Freeman to no time in prison due to his "extraordinary" cooperation with prosecutors. Freeman pleaded guilty to conspiracy and securities fraud charges related to an insider trading ring in 2011. Judge Rakoff further ordered Freeman to forfeit $181,000.Freeman, a ...