An investment banker passes along a tip to his brother about upcoming mergers involving his bank’s clients. The brother slips the tip to his brother-in-law, who uses the information to make more than $1 million from trading he did ahead of the deals. There’s no evidence that the banker received compensation for leaking the information, other than possibly some warm fuzzies for helping a family member make a lot of money. Is their family relationship enough to justify convicting the brother-in-law for insider trading? Or did the banker need to receive something tangible — say, a fancy new car or a duffel bag full of cash — in return?
Today, the Supreme Court is trying to figure out the answer to those questions….
‘Enforcement 40’ for 2020
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