Friends And Family Securities Fraud Conviction Upheld In Supreme Court
The Supreme Court unanimously upheld the insider trading conviction of a Chicago man who had traded based on inside tips from relatives. The man, Bassam Salman, argued that those who tipped him off to insider information must have gained some pecuniary benefit from the tip in order for him to be convicted of securities fraud, echoing a position recently adopted by the Second Circuit. But the Supreme Court easily rejected that logic, reaffirming the inference of a benefit whenever insider information is given to friends and family – settling a circuit split and potentially clearing the way for increased insider-trading prosecutions....