`Mishegas' New Insider-Trading Standards Weighed by Jury
- Judge calls personal benefit test `mishegas' -- or crazy
- Two brokers sued by SEC for trading ahead of 2009 IBM deal
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A New York federal jury is deliberating an insider-trading case testing new standards the government now must meet -- standards the judge called “mishegas,” or crazy.
The U.S. Securities and Exchange Commission insider-trading lawsuit against two former brokers is the first to test whether the U.S. can meet a 2014 standard set by a federal appeals court in New York that narrows the definition of benefit. The appeals court said the prosecutors and regulators must prove the trader knew the source of insider information got something concrete in exchange, which the judge said now gives a defense to cheaters.