Supreme Court to weigh reach of insider trading law

[Eugene]

Source: Reuters

U.S. | Sun Oct 2, 2016 | 1:55pm EDT

Supreme Court to weigh reach of insider trading law

By Nate Raymond | NEW YORK

The U.S. Supreme Court is set to consider this week a closely watched insider trading case that could limit the ability of prosecutors to pursue such charges against hedge fund managers and other traders.

The eight justices, who open their 2016-17 term on Monday, will hear arguments on Wednesday in the case of an Illinois man, Bassam Salman, who prosecutors said made nearly $1.2 million trading on inside information about mergers involving clients of Citigroup Inc(C.N), where his brother-in-law worked.

It is the first time in two decades that the Supreme Court has taken up a case involving insider trading, a crime that the U.S. Congress has never defined and has left the courts and the Securities and Exchange Commission to shape.

Salman was convicted of conspiracy and securities fraud charges arising from insider trading and sentenced in 2014 to three years in prison.

At issue in Salman's appeal is whether the government in insider trading cases must prove that an alleged source of corporate secrets like the brother-in-law received a tangible benefit like cash in exchange for any tips.

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Read more: http://www.reuters.com/article/us-usa-court-insidertrading-idUSKCN1220FP

[InkAddict]

1. Hope they don't waste a lot of time on this

The guy was convicted, so obviously a judge and/or jury was convinced in the first place. Would a positive defendent outcome cause those convicted in the past to sue to have their convictions overturned as well and records expunged, even should the tipster have been paid with intangible benefits? What "legal beagle" determined his crime was never sufficiently defined? How much more "inside" is family?