Raymond Dirks, Whose Tipster Case Redefined Insider Trading, Dies at 89 – The New York Times

Raymond L. Dirks, a maverick Wall Street analyst who was accused of insider trading by securities regulators but then vindicated by the U.S. Supreme Court as a whistle-blower in a major fraud, died on Dec. 9 in Manhattan. He was 89.

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Mr. Dirks, whom Bloomberg News once branded as “arguably Wall Street’s most famous securities analyst,” figured in exposing one of the largest corporate frauds in American history.

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The threat of suspension by the commission and other potential penalties, coupled with the $1.5 million (in today’s dollars) that Mr. Dirks said he spent on legal fees from 1973 through 1983 as he challenged the S.E.C. in the federal court system, severely affected his earnings, his brother said.

That 10-year odyssey ended in 1983, when the Supreme Court overturned the S.E.C. censure, rejecting the agency’s interpretation of insider trading. (The interpretation had also been challenged by the Justice Department in a strongly worded brief.)

Source: Raymond Dirks, Whose Tipster Case Redefined Insider Trading, Dies at 89 – The New York Times