United States: Friend And Family Perils: When The SEC Alleges Tipping

Imagine the horror: a corporate executive confides in a family member, sharing information about her career (and, therefore, about her company), and the family member trades in the company's securities. Or a young professional shares a house with a friend, who pieces together what the professional is working on and trades. Government insider trading investigations ensue, the traders are charged, and lives are changed, all because of an inadvertent tip. And, because these cases are built on circumstantial evidence and credibility assessments, there is always the risk that the government could take the view that the tips were not inadvertent, and... Read the remainder of the article here