The federal appeals court in Manhattan on Monday said the government may pursue insider-trading charges under a newer securities-fraud law not subject to a key requirement of the statute prosecutors traditionally use. The change will make it much easier to bring cases, particularly against those who trade on illegal tips passed to them indirectly and who may not know the source personally.
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Monday’s 2-1 ruling upheld the insider-trading convictions of consultant David Blaszczak and other men under securities-fraud provisions of the 2002 Sarbanes-Oxley Act. The men argued for the verdicts to be tossed in part because prosecutors failed to show the supplier of the illicit information received a “personal benefit,” such as cash.
via Insider-Trading Prosecutions Just Got Easier With Court Ruling – Bloomberg.
