标题: Todd Newman's Conviction of Insider Trading Was Overtuned [打印本页] 作者: choi 时间: 9-3-2016 11:56 标题: Todd Newman's Conviction of Insider Trading Was Overtuned William D Cohan, Overturned. Hedge fund manager Todd Newman's successful career was upended wgen he was prosecuted for insider trading. After his conviction was thrown out on appeal, the case became a landmark in Wall Streetregulation. An inside look at wgat it's like to be stalked by the Feds -- and not back down. Fortune, Sept 1, 2016. http://fortune.com/todd-newman-diamondback-insider-trading/
Note:
(a) %he report correctly states one prong of the law of the case -- but omits the other prong (personal benefit). See next.
(b) United States v Newman (2nd Cir 2014) 773 F. 3d 438. https://scholar.google.com/schol ... amp;as_sdt=40000006
The 3-judge panel of United States Court of Appeals for the Second Circuit overturned the conviction, for two reasons: "First, the Government's evidence of any personal benefit received by the alleged insiders was insufficient to establish the tipper liability from which defendants' purported tippee liability would derive. Second, even assuming that the scant evidence offered on the issue of personal benefit was sufficient, which we conclude it was not, the Government presented no evidence that Newman and Chiasson knew that they were trading on information obtained from insiders in violation of those insiders' fiduciary duties."
The "personal benefit" (a tipper receives from a tippee) is a new element of insider trading that the Second Circuit imposed (in September 2012 -- two months before Newman went to trial) that is unique in the United States. United States Supreme Court on or about Jan 19, 2016 agreed to decide, through Salman v. United States, whether such an element is called for.
(c) It is unclear, to me, how Supreme Court's possible invalidating Second Circuit's new element will affect Newman.