TBA Law Blog


Posted by: Brittany Sims on Jul 30, 2015

Seeking to overturn a major setback in its power to punish the trading of stocks based on insider tips, the Obama administration today asked the U.S. Supreme Court to revive one of the highest profile Wall Street prosecutions in years, SCOTUSblog reports. The case grew out of federal prosecutors’ broad investigation into suspected insider trading at hedge funds. In the specific case at issue, two hedge fund managers were convicted of securities fraud after their trades in technology company stocks -- allegedly based on a chain of tips containing insider information -- resulted in gains close to $72 million. The Second Circuit Court of Appeals previously overturned the convictions.