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The weekly news source for investment management legal and compliance professionals

Topic: Insider Trading

Cooperman Settles Insider Trading Charges for $5 Million and Onsite Monitoring

June 2, 2017
Donít let anyone tell you that the SEC isnít pursuing insider trading cases in the wake of some reversals the agency experienced in the past couple of years. The rules governing such enforcement actions may have tightened, but they continue to be brought. One just resulted in significant penalties against an advisory firm owner and his firm.

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Supreme Court Sides with Prosecutors in Insider Trading Case

December 8, 2016
The U.S. Supreme Court on December 6 gave Justice Department and SEC prosecutors an early holiday gift: it unanimously rejected a challenge to a lower court ruling on an insider trading case. In doing so, the Supreme Court returned one of the standards by which insider trading cases are judged to approximately where it was prior to 2014.

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Hedge Fund Settles SEC Charges That It Failed to Detect Insider Trading

October 28, 2016
Failure to detect insider trading may result in consequences as serious as those for insider trading itself. Just ask this hedge fund manager.

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Two Hedge Fund Managers at Same Firm Face Separate Insider Trading Charges

June 17, 2016
Whatís worse than one hedge fund manager charged with insider trading at your firm? Two hedge fund managers charged with insider trading. This might usually be said in humor, but not in this case.

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The Year in Review: Challenges in Asset Management, Cybersecurity, Insider Trading

December 18, 2015
No two years are alike, and a review of 2015ís top developments that affected, or will affect, advisers and funds proves the point. 2015 was a year of challenges: proposed rules affecting asset managers, an intensified focus on cybersecurity that is only likely to intensify more, and an unexpected change to the definition of insider trading.

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Warning: Political Intelligence May Be Material Non-Public Information

December 4, 2015
Advisers receiving information from political intelligence firms Ė or advisers that themselves act as political intelligence firms Ė need to ensure that any intelligence received or forwarded does not constitute material non-public information, and that they have the proper policies and procedures in place if it does. Firms that fail to do so may find themselves in the SECís cross-hairs.

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Insider Trading: High Court's Refusal to Review Leaves Uncharted Path Forward

October 9, 2015
The U.S. Supreme Courtís refusal to review a lower court ruling that redefined insider trading creates an uncertain legal world. Defense attorneys and their clients may take comfort from the higher hurdles some prosecutors may now have to jump over to bring such cases, but all parties will need to get used to a new playing field as practice takes hold.

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Data Analysis Tools Lead to Insider Trading Charges Against Investment Analyst

October 2, 2015
The SECís Division of Enforcement appears to be sifting trade data in an effort to match specific trades with events likely to affect a stockís price. Itís a recipe likely to produce insider trading charges.

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Supreme Court May Again Provide the Final Word on Insider Trading

August 6, 2015
The insider trading decision from last Decemberís ruling by a panel of the U.S. Court of Appeals for the Second Circuit must be sticking in the craw of U.S. attorney for the Southern District of New York Preet Bharara. The Department of Justice is asking the Supreme Court to reverse it.

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Second Circuit Chooses Not to Review Key Insider Trading Decision

April 10, 2015
The full U.S. Court of Appeals for the Second Circuit on April 3 denied U.S. Attorney Preet Bhararaís petition that it review the December 10 decision of a Second Circuit three-judge panel that overturned the conviction of two hedge fund portfolio managers and makes it more difficult to prove insider trading. The Second Circuit gave no rationale for its decision not to review the panelís ruling in the case, United States of America v. Todd Newman and Anthony Chiasson.

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Three Bills Seek to Define Insider Trading in Wake of Second Circuit Ruling

April 3, 2015
The fallout continues from the U.S. Court of Appeals for the Second Circuitís December decision narrowing what constitutes insider trading.

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U.S. Attorney’s Office Seeks Overturn of Appeals Court Insider Trading Ruling

January 30, 2015
The December 10 insider trading ruling by the U.S. Court of Appeals' Second Circuit was "wrong," "breaks with Supreme Court and Second Circuit precedent, conflicts with the decisions of other circuits, and threatens the effective enforcement of the securities laws."

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Commission Succeeds in Insider Trading Case Involving Benefit and Knowledge

December 19, 2014
Insider trading cases are not going to disappear following the appellate court decision (ACA Insight, 12/15/14) earlier this month that tossed out the convictions and indictments of two advisers and, in doing so, raised the bar for future insider trading prosecutions.

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Overturn of Portfolio Manager Verdicts Raises Bar for Insider Trading Charges

December 11, 2014
Christmas came a little early for investment advisers and the funds they manage this year.

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SEC Justifies Use of Fair Fund in Insider Trading Case

November 21, 2014
The SEC is sticking with its fair fund plan.

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Two SEC Commissioners: No Pool for Insider Trading Settlement Distributions

November 14, 2014
"Fair funds" may not be fair to investors Ė at least not according to two SEC commissioners.

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Insider Trading Case Loss Demonstrates SEC’s Zeal … and Adviser Need for Caution

June 6, 2014
In the end, it was one set of facts against another Ė and it appears the jury opted for the advisersí set. But how much of a win is it when an adviser spends more than 10 years fighting the SEC?

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Sharing with Friends Leads to Insider Trading Settlement Victory for SEC

May 16, 2014
What price a friend? Most likely not the price of an SEC settlement for insider trading.

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Summary Judgment in Expert Network Case Demonstrates Risk to Advisers

April 25, 2014
If you're paying for research that seems too good to believe, there's a good chance it's material non-public information. You may also not only be paying big fees for information you can't act on, you may be engaging in insider trading.

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Insider Trading: Friends and Information Can Be a Dangerous Mix

October 4, 2013


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