All Insider Trading articles – Page 5
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Blog
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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Blog
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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Blog
'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 ...
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Blog
Consequences of Insider-Trading Decision Continue
The appellate court decision in U.S. v. Newman has turned Trent Martin from an extradited, admitted insider trader awaiting a sentence of up to several years in prison into a free man. He may not be the last.
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Blog
Feds Seek Rehearing on Insider-Trading Setback
The Justice Department has asked for a new hearing in the case of U.S. vs. Newman, where an appellate decision had previously reversed insider-trading convictions of two men. Prosecutors say the Newman decision has caused difficulties in other recent insider-trading cases, as the definition of the “personal benefit” requirement conflicts ...
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Article
Insider-Trading Risks Get More Complicated
Image: The appellate court decision to overturn insider-trading convictions of two Wall Streeters brings clarity to some aspects of the crime. It does not, however, reduce insider-trading risks. Yes, the ruling narrows the scope of such offenses, but “a compliance officer would have to be out of his mind to ...
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Blog
'FIN4' Hackers Target Over 100 Companies Seeking Market-Moving Information
Cyber-security firm FireEye released a report this week on a group of hackers that has targeted e-mail accounts of individuals with access to confidential information at more than 100 companies. The hackers are looking for non-public information about merger and acquisition deals and other major market-moving revelations, particularly in the ...
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Blog
Former Law Firm I.T. Employee Pleads Guilty to Insider Trading
On September 14, 2014, the SEC filed an insider trading case against Dmitry Braverman, a senior information technology professional at law firm Wilson Sonsini Goodrich & Rosati. The case was the SEC's second in a six month period alleging insider trading by law firm employees, and the SEC emphasized that ...
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Blog
Despite Commissioners' 'Dissent' in WSJ, SEC Argues For Fair Fund in SAC Case
As I discussed here last week, the SEC recently stated its intention to create a Fair Fund to distribute the funds from its $602 million insider trading settlement with SAC Capital to the people who were on the losing side of certain trades with SAC. This week, that decision was ...
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Blog
Justice Scalia: Congress, Not SEC, Must Define Insider Trading Laws
On November 10, 2014, the U.S. Supreme Court declined to hear Douglas Whitman's appeal of his August 2012 conviction on two counts of conspiracy to commit securities fraud and two counts of securities fraud. Prosecutors in the SDNY had charged Whitman, a portfolio manager at Whitman Capital, LLC, with engaging ...
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Blog
Life Comes at You Fast, Part II: Eike Batista
"Life comes at you fast," doesn't it Eike Batista? (Just ask MC Hammer and Allen Stanford).It has been a very tough recent stretch for former Brazilian billionaire, Eike Batista. In 2012, shortly after he was described by Brazil's President, Dilma Rousseff, as "our standard, our expectation and, above all, the ...
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Blog
SEC Charges Two Friends With 'Audacious' Insider Trading Scheme
Late last week the SEC announced its latest insider trading case, which was filed against two friends and former business school classmates who allegedly used inside information to generate nearly $700,000 in illicit profits. The SEC alleged that Zachary Zwerko, a financial analyst at a major pharmaceutical company, learned about ...
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