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Securities Fraud Insider Trading Department of Justice (DOJ)

White & Case LLP

DOJ’s Novel Application of Insider Trading to 10b5-1 Plans Leads to Conviction

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In April, we issued an alert discussing the U.S. Securities and Exchange Commission ("SEC") and Department of Justice’s ("DOJ") expansion of insider trading to 10b5-1 plans. On June 21, 2024, a federal jury in California...more

BCLP

Conviction of Insider in Connection with 10B5-1 Trading Plan

BCLP on

As discussed in our March 3, 2023 post, the DOJ and SEC brought an insider trading case against the founder and former CEO and Executive Chairman of Ontrak, Inc. based upon the former executive failing the “clean hands”...more

Kohn, Kohn & Colapinto LLP

Department of Justice Secures Conviction in First Insider Trading Prosecution Based Exclusively on the Use of Rule 10b5-1 Trading...

On June 21, a jury in the U.S. District Court for the Central District of California found the former CEO and Chairman of Ontrak, Inc., a publicly traded healthcare company guilty on one count of securities fraud and two...more

Morrison & Foerster LLP

Takeaways for In-House Counsel from DOJ’s First Insider Trading Trial Involving a Rule 10b5-1 Plan

On June 21, 2024, a jury in California federal court found a former chief executive officer of a publicly traded healthcare company guilty of insider trading in United States v. Peizer, the first criminal insider-trading case...more

Vinson & Elkins LLP

Inside(r) Scoop: The DOJ Struggles to Prosecute Insider Trading

Vinson & Elkins LLP on

Amidst the government’s ongoing efforts to combat insider trading, a recent dismissal of criminal charges for insider trading gives new insight into this constantly evolving area of law. A federal judge recently dismissed...more

Morgan Lewis

US Government Continues to Crack Down on Insider Trading with Four Coordinated Actions

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The US Securities and Exchange Commission (SEC) and Department of Justice (DOJ) on June 29, 2023 brought insider trading charges against several defendants in four proceedings. The insider trading cases demonstrate key focus...more

Vedder Price

SEC and DOJ Announce Four New Insider Trading Cases Against Multiple Defendants

Vedder Price on

On Thursday, June 29, 2023, the Securities and Exchange Commission (SEC) announced the filing of four civil insider trading cases involving a variety of alleged insider trading violations. These cases were brought against a...more

Akerman LLP

DOJ Indicts CEO for Allegedly Using Trading Plans to Commit Insider Trading

Akerman LLP on

Critics have repeatedly alleged that executives routinely take advantage of the many loopholes that exist regarding Rule 10b5-1 trading plans to engage in improper conduct. These criticisms finally seem to have been heard by...more

Bradley Arant Boult Cummings LLP

Second Circuit Limits Use of Confidential Government Agency Information as Basis for Securities Fraud Prosecutions

On December 27, 2022, the Second Circuit called into question the government’s theory of insider trading of confidential government agency information, potentially undercutting the DOJ’s enforcement of various white-collar...more

BakerHostetler

DOJ Brings First-Ever Indictment for Insider Trading Based on Use of a Rule 10b5-1 Plan

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On Wednesday, March 1 the Department of Justice (DOJ) announced its first-ever prosecution of an individual for insider trading based on an executive’s use of 10b5-1 trading plans. Terren Peizer, the executive chairman of...more

Morrison & Foerster LLP

Terran Peizer Insider Trading Case

On March 1, 2023, the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) brought insider trading charges against Terren S. Peizer, the founder, Executive Chairman, and Chairman of the Board of...more

BCLP

Criminal indictment of Executive Chairman and parallel civil charges show Feds' willingness to challenge Rule 10b5-1 trading plans

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The Justice Department recently indicted the Executive Chairman of Ontrak, Inc. alleging that he failed the “clean hands” requirement because he had been aware of material nonpublic information relating to the potential loss...more

Proskauer - Corporate Defense and Disputes

Second Circuit Questions Use of Criminal Insider-Trading Statute Without Proof of Receipt of Personal Benefit

The Second Circuit held yesterday that a government agency’s nonpublic, pre-decisional regulatory information does not constitute “property” for purposes of the federal insider-trading and wire-fraud statutes. The decision...more

Foley Hoag LLP - White Collar Law &...

The DOJ, SEC, Insider Trading, and Data Analysis

A year ago, the Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”) heralded data analytics in announcing parallel insider trading actions against a senior executive at a pharmaceutical company...more

Arnall Golden Gregory LLP

Insider Trading Cases Back on the Rise . . . With a Twist

Pillow talk from an FBI agent trainee. A former congressman turned consultant trading on merger information learned on the job. A former Goldman Sachs investment banker misappropriating information about deals the bank was...more

Freeman Law

A Crypto Quagmire: Civil and Criminal Charges Filed against a Coinbase Manager for Insider Trading of Securities

Freeman Law on

Recently the SEC filed suit for insider trading of securities against a high-level employee at the popular crypto exchange, Coinbase. The SEC filed its civil suit in Seattle on July 22, 2022, against and his co-conspirators....more

Polsinelli

Concerning Questions Raised by SEC Action Against Former Coinbase Employee

Polsinelli on

On July 21, 2022, the Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) each alleged insider trading violations against a former Coinbase employee, his brother, and another alleged acquaintance...more

Foley Hoag LLP

SEC and DOJ Bring First-Ever Crypto Insider Trading Actions

Foley Hoag LLP on

This year had already seen an uptick in federal enforcement activity focused on digital assets with the expansion of the SEC’s Crypto Assets and Cyber Unit (see our prior client alert on that expansion and its impact here)...more

Cadwalader, Wickersham & Taft LLP

SEC and Department of Justice Announce Parallel Crypto 'Insider Trading' Charges as Regulators and Congress Wrangle over...

On July 21, the U.S. Securities and Exchange Commission (“SEC”) and the U.S. Attorney’s Office for the Southern District of New York announced parallel civil and criminal actions against a former product manager at Coinbase...more

Allen Matkins

SEC Ventures Into The Dark Web, But Can It Establish A Connection?

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In March, the Securities and Exchange Commission announced its first securities enforcement action involving the "dark web".  The SEC's complaint describes the "dark web" as referring to "a subset of the deep web that is...more

Foley Hoag LLP

U.S. Supreme Court Vacates Second Circuit’s Expansion of Criminal Insider Trading Liability

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On January 11, 2021, the U.S. Supreme Court vacated the 2019 decision of the U.S. Court of Appeals for the Second Circuit in United States v. Blaszczak, which substantially broadened the scope of criminal insider trading...more

Skadden, Arps, Slate, Meagher & Flom LLP

Inside the Courts – An Update From Skadden Securities Litigators

This quarter’s issue includes summaries and associated court opinions of selected cases principally decided between July and October 2020. Class Certification - Cryptocurrency – Definition of a Security - Derivative...more

Akin Gump Strauss Hauer & Feld LLP

Government Enforcers Focused on Coronavirus-related Actions

- Market participants should review and assess their compliance procedures to prevent and detect insider trading risks associated with COVID-19. - Companies should increase their vigilance regarding cybersecurity threats...more

Perkins Coie

Second Circuit Provides Easier Path for Criminal Insider Trading Cases

Perkins Coie on

The U.S. Court of Appeals for the Second Circuit issued an opinion in United States v. Blaszczak on December 30, 2019 that could significantly affect the prosecution of criminal insider trading cases. The Second Circuit...more

Foley Hoag LLP - White Collar Law &...

House of Representatives Votes to Codify Insider Trading Laws

December 9th, 2019, the full House of Representatives approved H.R. 2534, otherwise known as the Insider Trading Prohibition Act. If passed by the Senate and signed by the President, this legislation would mark an important...more

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