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Compliance, the SEC, and the Supreme Court

The Supreme Court Weighs in Insider Trading

If you were expecting a tidal wave of changes from the Supreme Court, you will be disappointed. On Tuesday, the Court delivered its opinion in Salman v. U.S. Prosecutors can see a glimmer of upside because they do not have to prove that something valuable changed hands in order to prove the crime of insider trading. Newman […]

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Personal Benefit in Insider Trading

While Mr. Cooperman was accused of making millions on insider trading. Sheren Tsai made $23,914.41 on her illegal trades. The relatively small amount of the gains caught my eye in the press release, but a particular line in the pleadings made me think it was worth highlighting. Ms. Tsai was (is?) in a romantic relationship […]

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Is Cooperman The New Cuban?

The Securities and Exchange Commission brought charges against Mark Cuban for insider trading. The SEC claimed he was an insider based his status as a big shareholder in the company or that he had agreed to not trade on material non-public information disclosed to him. The SEC brought charges against Leon Cooperman for trading on material […]

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Paxil by JustinLing CC BY

A Pair Of Pharma Insider Trading Cases

Pharmaceutical company stock is known to be volatile depending on success or failure of drug trials. As pharma companies become successful they become targets for larger pharma companies looking to supplement their lines. The Securities and Exchange Commission filed two actions recently for suspect trading in pharma companies. The first case is a bread and […]

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roulette by Chris Yiu

A Bad Bet On Insider Trading

The recent insider trading case against William “Billy” Walters of Las Vegas is fascinating for all of the players involved, including him. Plenty has been written about the charges because it implicates pro golfer Phil Mickelson and former Dean Foods board member Thomas C. Davis. All three are implicated in insider trading. How did they get […]

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Love For Your Mother Can Be Insider Trading

Lawrencia Afriyie took some risky bets in the market. She bought out-of-the-money options, but made $1.5 million in profits. It just so happens that her son, John, worked for for an investment firm that had material non-public information on the target of those options. According to the SEC complaint, John Afriyie worked at an investment […]

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The SEC’s Insider Trading Case Falls Further Apart

Five years ago, the SEC came crashing into the offices of Level Global Investors accusing it of engaging in illegal insider trading. The firm agreed to pay $21.5 million in settlement money to resolve that insider trading investigation. Now it wants its money money back. When it comes to insider trading, it’s not the firm […]

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breaking bad

When a Compliance Officer Breaks Bad

There has been considerable discussion in the compliance community around the Securities and Exchange Commission bringing charges against compliance officers. There are three areas that the SEC feels it is justified in bringing charges: (1) when the compliance officer is involved in the wrongdoing; (2) when the compliance officer impedes the examination or investigation; and […]

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Outside Trading Defendants Settle

A month ago, the Securities and Exchange Commission brought charges against a large network of traders who made a big pile of money by hacking into corporate press release websites and trading on the news before it was made public. Two traders, who made $25 million in the scheme, settled the charges against them and […]

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Jennifer_Garner_Capital_One

What’s in your Wallet? Insider Trading

It’s clearly insider when a company’s high-level executive trades on pending earnings data not yet released to the public. It’s clearly not insider trading when you count cars in a retailer’s parking lot to get insight to sales. A recent SEC case falls somewhere in the middle. The Securities and Exchange Commission brought charges against […]

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