SCOTUS accepts insider trading case involving passed tips; does tipper have to get tangible benefit?
The U.S. Supreme Court has agreed to review the insider trading conviction of an Illinois man who received confidential information from the brother of a former investment banker.
The court agreed to hear the case of Bassam Salman on Tuesday, Bloomberg News reports. At issue is whether the corporate insider had to receive a tangible benefit to sustain Salman’s insider trading conviction.
The San Francisco-based 9th U.S. Circuit Court of Appeals had upheld Salman’s conviction, and that created a circuit split, Salman said in his cert petition, according to this November story by Law360.
The New York-based 2nd U.S. Circuit Court of Appeals had ruled in late 2014 that two hedge fund managers could not be convicted of insider trading unless they knew the original source of the information had received a concrete benefit. The U.S. Supreme Court denied cert in that case, United States v. Newman, in October.
