Supreme Court To Take Up Insider Trading Case, First Time In 20 Years
The Supreme Court opens its 2016-2017 term this week and, to be expected, has a lengthy list of cases to be heard. Among those cases: how to best evaluate suspected insider trading scenarios.
Spurred by a recent occurrence in which an individual, Bassam Salman, was sentenced to three years in prison after being found guilty of engaging in insider trading with his brother-in-law, who was employed at Citigroup Inc. (NYSE: C) at the time. To date, U.S. Congress hasn't defined insider trading and has left such judgement up to courts and the Securities and Exchange Commission.
Salman’s appeal centers on whether the government can prove that he offered compensation to his brother-in-law for the trading tips.
As detailed on Fox News, Morgan, Lewis and Bockius defense lawyer, David Miller, believes this decision will have long-term affects on similar future cases.
"This will be a court decision that could have significant ramifications on if tipping cases can continue to be brought with the fervor they have been brought in the last decade."
The case also marks the first time the Supreme Court has made a decision on an insider trading deal in two decades.
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