WHAT WAS THEIR FIRST CLUE?
http://www.bloomberg.com/news/articles/2015-07-30/u-s-asks-supreme-court-to-review-insider-trading-ruling
Just when Wall Street thought it was safer to trade on illicit tips, the U.S. government is pushing to reverse what it calls a harmful and unprecedented court ruling on insider trading. U.S. Solicitor General Donald Verrilli on Thursday asked the Supreme Court to review a federal appeals court decision from New York that he said will encourage corporate insiders to pass confidential information to friends, relatives and business acquaintances.
Verrilli may be taking a chance in seeking the high court review as the justices have been skeptical of government arguments in some recent criminal appeals. The justices are likely to be “concerned about the rights of the accused to fair notice that their actions are insider trading,” said Sam Lieberman, a lawyer who has represented individuals and investment advisers in civil and criminal investigations. “That is particularly so given the court having five conservative votes that favor limited government.”
Four of the nine Supreme Court justices must vote to hear the case before it can be considered. The court won’t be in session until October.
The lower court said prosecutors must prove that a person who traded on an illegal tip knew that the source received a personal benefit for violating a duty to keep it secret. And the benefit has to be something more than just friendship, the court said. It’s the latter ruling that the government is attacking in its request to the Supreme Court...
VIOLATING A DUTY ISN'T SUFFICIENT EVIDENCE OF A CRIME?
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