I think this is true. I would have to look to find a case where this was what happened, but I would be surprised if such a case did not already exist. I think

I think this is true. I would have to look to find a case where this was what happened, but I would be surprised if such a case did not already exist. I think this situation is much more difficult to find and enforce, however. As an executive, you have to file with the SEC for share purchases (I believe its either a certain number of shares or a certain $ amount bought/sold. I also believe the form is form 4) So it becomes a matter of figuring out when the senior exec knew the information and traded on it, and I think its a bit more difficult to enforce because its not your typical insider case. I like your example, because it really hits at the edges of what is material non-public information. Something that just occurred to me: if you are a senior exec, your compensation is probably tied to share ownership in $ME. Even if you trade on $THEM, and make money, you're probably going to take a pretty substantial hit on your own $ME holdings. This isn't to say its any less fraudulent/misleading, but its an interesting thing to consider. I wish I had a better answer to this scenario.