‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInEx-Apple Lawyer Gene Levoff Blasts Insider-Trading Charges – Bloomberg
“The definition of insider trading is wholly judge-made: Every element of the crime and the scope of regulated individuals subject to it was divined by judges, not elected legislators,” Levoff’s lawyer Kevin Marino said in a filing. “This alone renders the criminal prosecution of insider trading unconstitutional.” Courts for years have upheld criminal indictments in […]
Judge Allows Ex-GOP Congressman Convicted for Insider Trading to Delay Prison Time
A former Republican congressman in New York, famously the first member of Congress to endorse Donald Trump for president, will not begin his 26-month prison sentence until at least June. Lawyer for Christopher Collins asked U.S. District Judge Vernon Broderick to permit months of delay in incarceration, given the threat of COVID-19. via Judge Allows […]
U.S. corporate crisis bailouts may prove bonanza for insider trading, new study warns – Reuters
The research, from scholars at the University of Pennsylvania’s Wharton School, Stanford University, University of Cambridge and IESE Business School, found insider trading profitability jumped dramatically during the 2007-2009 global financial crisis and subsequent government bailout.“ Anytime the government picks winner and losers, there is a greater opportunity for insider trading by connected individuals,” said […]
A Short Primer on the New Law of Insider Trading | New York Law Journal
Practitioners, listen up! You need to unlearn much of what you think you know about the law of insider trading. That law is changing—and quickly. In addition, new legislation has passed the House by an overwhelming margin and could conceivably pass the Senate this year. via A Short Primer on the New Law of Insider […]
Why In-House Counsel Need to Watch for Insider Trading, Public Disclosure Issues From COVID-19 | Corporate Counsel
The COVID-19 coronavirus pandemic means in-house counsel need to keep an eye on potential insider trading by employees at all levels who may gain access to material, nonpublic information about supply chain or other disruptions that could affect a company’s bottom line, or its financial outlook. Inside counsel also need to consider whether and how to handle […]
Judicial Inconsistency Frustrates Purpose of Insider Trading Law, Rakoff Says | New York Law Journal
U.S. District Judge Jed S. Rakoff of the Southern District of New York, in an interview with former Manhattan U.S. Attorney Preet Bharara, on Friday criticized the “judge-made” nature of federal insider trading law and called on Congress to address various “difficulties” that had been created by inconsistent court rulings. Rakoff, a 24-year veteran of the U.S. […]
Legal Department Leak Leads to Insider Trading Charges Against AIG Employee | Corporate Counsel
Insider trading charges against a former legal department worker at an American International Group Inc. subsidiary shows how careful in-house law departments must be in guarding their confidential information. The U.S. Securities and Exchange Commission on Thursday said it reached a consent agreement with Jon Aronson, a former senior administrative assistant in the subsidiary’s legal […]
Whistle-Blowers Should Fear Insider-Trade Ruling, Defendants Say
Robert Olan and Theodore Huber, who traded health-industry stocks on the tips they got about Medicare reimbursement rates, on Monday asked the full federal appeals court in Manhattan to reconsider an earlier ruling by a three-judge panel, citing the “extraordinary consequences” if it’s not reversed. Olan and Huber want a review of a Dec. 30 […]
SEC Wins Jury Trial Against Massachusetts Man Charged in Multi-Year Insider Trading Scheme
Yesterday evening, jurors in Boston federal court returned a verdict finding that Lexington, Massachusetts restauranteur Charlie Chen engaged in illegal insider trading in advance of five earnings announcements of Lexington-based company Vistaprint, N.V. The SEC’s evidence at trial showed that Chen, who was close friends with a Vistaprint insider and her husband, received highly confidential […]
Insider trading law is irreparably broken – The Washington Post
It’s time to admit that insider-trading “law” is irreparably broken. I used quotation marks because — hard to believe — there has never been an actual law that defines and prohibits insider trading. Yet thousands of nonviolent offenders have been incarcerated or otherwise penalized for this undefined crime, the amorphous contours of which have shifted […]