Insider-Trading Prosecutions Get Easier With Court Ruling
- Decision offers way around ‘personal benefit’ requirement
- Appeals court upholds insider convictions under Sarbanes-Oxley
Buildings stand in lower Manhattan in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Prosecutors have a stronger hand going after insider trading following a court ruling that lowered the bar for bringing cases.
The federal appeals court in Manhattan on Monday said the government may pursue insider-trading charges under a newer securities-fraud law not subject to a key requirement of the statute prosecutors traditionally use. The change will make it much easier to bring cases, particularly against those who trade on illegal tips passed to them indirectly and who may not know the source personally.