Investigating insider trading is difficult. Proving it is
even more difficult. Frequently, the trading is "suspicious" because of its
timing, magnitude, or for a variety of other reasons. Market watchers such as
FINRA use this term to classify...
This is the first segment of a five part series discussing the impact of the Second Circuit’s ruling in Newman on SEC insider trading cases
In seeking rehearing and an en banc hearing before the Second Circuit Court of Appeals...
The Commission was handed a split verdict in its insider trading – front running case against Siming Yang and his investment company, Prestige Trade Investments Limited by an Illinois jury yesterday. SEC v. Yang, Case No. 12-cv-02473 (N.D. Ill....
As I wrote about yesterday on the code of ethics for an investment adviser , one of the
requirements of registering with SEC as an investment adviser is implementing a
code of ethics. The most involved part of the code is the extensive reporting
The Second Circuit’s decision in U.S. v. Newman, 773 F. 3d 438 (2 nd Cir. 2014) [ an enhanced version of this opinion is available to lexis.com subscribers ] regarding the personal benefit test in insider trading either radically altered the law...
Traditionally, the SEC has brought insider trading cases as civil injunctive actions. The recent emphasis on administrative proceedings, however, appears to be changing that. Earlier this week the agency brought an insider trading cases as an administrative...
The SEC announced they had obtained an emergency freeze
against three Swiss-based traders under an allegation of insider trading. The
SEC claims that Compania International Financiera S.A., Coudree Capital Gestion
S.A., and Chartwell Asset Management...
Even smart people do dumb things. Lawyers presumably know
the law, but still break it. That means they occasionally take some short term
profits through insider trading and get caught red-handed.
Everyone is focused on the Galleon Group insider trading...
Another defendant in the on going Galleon insider trading
investigation was sentenced to prison. This time it was Jason Goldfarb who
previously pleaded guilty. The court sentenced Mr. Goldfarb to three years in
prison. U.S. v. Goffer, No. 1:10-cr-00056...
Thomas O Gorman, Partner, Porter, Wright, Morris & Arthur
The Commission filed its second settled insider trading case arising out of the financial difficulties of Blueknight Energy Partners, LP, previously known as SemGroup Energy Partners LP...
The SEC is on pace to settle a record number of enforcement actions, according to a new report released by NERA Economic Consulting ( here ). This trend is being driven by a marked rise in the number of actions against individuals, primarily in insider...
The battle lines are now clearly drawn over Newman and what constitutes impermissible tipping in violation of Exchange Act Section 10(b) ( here ). Previously, the Government filed a petition for certiorari arguing that Newman , which addressed the requirements...
When the Second Circuit handed down Newman the SEC joined with the Manhattan U.S. Attorney seeking rehearing en banc and arguing that the case would significantly hinder insider trading enforcement. Many wondered if the agency would move all it cases...
The SEC brought insider trading charges against two securities professionals. One was an investment adviser who traded for his account and several of his clients. The other was a registered representative. SEC v. Tabor Klein, Civil Action No. 9:13-cv...
The ongoing Galleon trial, and all the related SEC and
criminal investigations, have renewed the focus on insider trading. What is it?
When do you become restricted? How do you handle an investigation if misfortune
strikes and you become involved in one...