3 ms·
He was charged with illegal insider trading. It turns out that is in fact a crime. > Defendant Jun Ying (“Ying”) committed securities fraud by engaging in ille
by teej 9y ago
He was charged with illegal insider trading. It turns out that is in fact a crime.
> Defendant Jun Ying (“Ying”) committed securities fraud by engaging in illegal insider trading. After being entrusted with material, nonpublic information about a massive cyber-intrusion and data breach suffered by his employer, Equifax Inc. (“Equifax” or “the company”), Ying exercised all his vested Equifax stock options and sold the shares prior to the public announcement of the breach. By selling when he did, Ying avoided losses in excess of $117,000.
- zwily 9y agoI just listened to a podcast today about insider trading... and apparently, there’s not actually a law against insider trading itself. Technically what you get prosecuted for is stealing information, or something like that. Obviously there is tons of case law to support the illegality of insider trading, but you can’t find an actual law that says “you will go to jail if you do insider trading”.
- chc 9y agoI'm pretty sure SEC Rule 10b-5[1] covers insider trading, along with various supplementary rules. [1]: https://www.ecfr.gov/cgi-bin/retrieveECFR?gp=&SID=3d58bfb5f19c9ad7e1c1c20032a314df&mc=true&r=SECTION&n=se17.4.240_110b_65 https://www.ecfr.gov/cgi-bin/retrieveECFR?gp=&SID=3d58bfb5f1...
- tanderson92 9y agoTechnically, a Rule is not a Law.
- sokoloff 9y agoThere are anti-fraud provisions in securities law; insider trading is prosecuted as a form of fraud.
- fludlight 9y agoThis methodology is not uncommon. Mail fraud and bribery of foreign officials are prosecuted as "depriving the public of honest services".