Richard G. Mason, Steven A. Cohen, Ian Boczko, Sarah A. Lewis, and David Gruenstein of Wachtell, Lipton, Rosen & Katz, have prepared a memorandum concerning the possession and use of information when buying and selling distressed debt (an abridged version of which was published in The New York Law Journal): Trading in Distressed Debt . … Read more »
Category: Insider Trading
Insider Trading by Congress
Apparently members of Congress and their staff can make trades using non-public information obtained through their official positions. House Rules Committee Chairwoman Louise M. Slaughter, D-N.Y., and Brian Baird , D-Wash., are sponsoring what they call the Stop Trading on Congressional Knowledge Act (HR 682) that would prohibit Members of Congress and their staffers from … Read more »
What Is Insider Trading?
The SEC.gov website has a blurb on Insider Trading. They start off with legal insider trading, when officers, directors and employees buy and sell stock in their own companies. Corporate insiders are required to report their trades. Illegal insider trading “refers generally to buying or selling a security, in breach of a fiduciary duty or … Read more »
Chakrapani Insider Trading
The Securities and Exchange Commission charged Ramesh Chakrapani with insider trading. Chakrapani was an employee of the Blackstone Group. The SEC alleges that Chakrapani tipped off a friend about the pending acquisition of the supermarket company Albertson’s Inc. before the public announcement of the deal in January 2006. See coverage of the story: Steve Schwarzman … Read more »
The SEC v. Mark Cuban Insider Trading Case
McDermott Will & Emery put together an excellent peice on insider trading: The SEC v. Mark Cuban Insider Trading Case (.pdf) by Stephen E. Older and Seth T. Goldsamt. Insider trading under U.S. law has developed through a case-by-case interpretation of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 in the … Read more »
Insider Trading and Family Betrayal
Bruce Carton put together a collection of insider trading enforcement actions involving family betrayal: The Five Levels of Familial Betrayal, SEC Edition. Read more »
No Laughing Matter; National Lampoon Subject to SEC Complaint
See a copy of the complaint at JD supra: SEC v. National Lampoon. The Commission’s complaint alleges that, from at least March 2008 through June 2008, Laikin, Barsky, Rodriguez and Dougherty engaged in a fraudulent scheme to manipulate the market for the common stock of National Lampoon. Specifically, Laikin, along with Barsky, paid kickbacks in … Read more »
Legal Insider Trading
Bruce Carton of Compliance Week and Securities Docket put together examples of “Legal Insider Trading” on his Enforcement Action blog. Read more »
Mark Cuban and Insider Trading
The Wall Street Journal reported that the SEC filed insider trading charges against Mark Cuban (owner of the Dallas Mavericks basketball team): SEC Charges Mark Cuban With Insider Trading. You can read the full text of the complaint against Mark Cuban. According to the complaint, Cuban owned 600,000 shares in Mamma.com Inc. (now called Copernic … Read more »
Deloitte sues vice chairman for client stock trades
Accounting firm Deloitte & Touche LLP has sued its former vice chairman for trading in securities of the firm’s audit clients. In a lawsuit filed Oct. 29 in Delaware Chancery Court, Deloitte said Thomas Flanagan “repeatedly lied to Deloitte about his clandestine trading activities in annual written certifications, going so far as to conceal the … Read more »