Subscribe to our mailing list

* indicates required

 

 

 

 

BROWSE BY TOPIC

ABOUT FINANCIALISH

We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.

 

Stay Informed with the latest fanancialish news.

 

SUBSCRIBE FOR
NEWSLETTERS & ALERTS

FOLLOW US

Regulatory Sanctions

Supreme Court Backs Prosecutors on Insider Trading Cases

December 6, 2016

The Supreme Court on Tuesday cemented the ability of prosecutors to pursue insider trading cases based on tips passed along among friends and family. The court, in a unanimous opinion written by Justice Samuel Alito, affirmed the conviction of Bassam Salman, who traded on information originally from his brother-in-law who worked as an investment banker at Citigroup.

 

Mr. Salman, who was convicted in 2013 and sentenced to 3 years in prison, had contended that evidence of a family relationship between the tipper and the tip recipient wasn’t enough to support a conviction. The high court disagreed, saying an earlier 1983 Supreme Court decision easily resolved the case against Mr. Salman. Justice Alito said the earlier high-court precedent “makes clear that a tipper breaches a fiduciary duty by making a gift of confidential information to a trading relative, and that rule is sufficient to resolve the case at hand.”