Lawyer pleads guilty to insider trading based on tip from golfing buddy
A Massachusetts lawyer has pleaded guilty to conspiracy and securities fraud charges for trading on inside information learned from a golfing buddy.
Lawyer Douglas Parigian, 56, pleaded guilty Tuesday but reserved the right to appeal based on a recent appellate ruling that made it more difficult for the government to pursue insider trading charges, Reuters reports.
The decision by the New York-based 2nd U.S. Circuit Court of Appeals said a conviction requires proof that a person tipped to inside information knew that an insider disclosed confidential information and did so in exchange for a personal benefit.
Prosecutors alleged Parigian received inside information about American Superconductor Corp. from a golfing buddy who learned information about the company while socializing with a company executive at a country club.
Related article:
ABAJournal.com: “Lawyer and golf buddy are indicted for alleged insider trading; BigLaw partner settles SEC suit”
