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> Brown ... repeatedly tipped ... to his best friend Wylam ... Wylam ... traded on this information and also tipped Sood .. Sood traded on this information and

> Brown ... repeatedly tipped ... to his best friend Wylam ... Wylam ... traded on this information and also tipped Sood .. Sood traded on this information and tipped his three friends also illegally traded on the information. (edited for brevity) So it sounds like Brown texted his bestie something he shouldn't have. Bestie then passed it on to people who made lot of money on it. The SEC, through some combination of SQL select statements and creative greps managed to nab the bigger idiots and follow them back to the source. Everyone who obviously violated the law by trading on info they shouldn't have has settled and the SEC is still trying to nail Brown. Since Brown didn't trade I fail to see where he violated the law. Contractual obligations with his employer maybe. Regulatory requirements maybe. But you generally need to trade or have reason to suspect that someone will trade in order to insider trade. Edit: by "the law" I mean the subsection of 10b that the SEC release implies the whole crew violated. Not some unrelated regulatory law.

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bobbylarrybobby 5y ago
> Since Brown didn't trade I fail to see where he violated the law This article suggests that he may have engaged in conspiracy to commit securities fraud. https://www.latimes.com/business/la-fi-supreme-court-insider-trading-20161206-story.html https://www.latimes.com/business/la-fi-supreme-court-insider...
- throwaway0a5e 5y ago
  That article seems to be talking about Wylan, not Brown. >$1.5 million in stock profits by trading on confidential tips that originated from his brother-in-law, an investment banker in California. Brown may have violated some minor regulatory laws depending on the specific details of his employment but you generally need to trade, benefit or have reason to think trading is happening on your info in order to get slapped for insider trading.
johntb86 5y ago
The SEC complaint mentions this: > On August 5, 2016, Brown—whose tips enabled his friend, Wylam, to make nearly one million dollars—texted his then-girlfriend to inform her that he was going to Wylam’s house to, among other things, “talk to him about $.” One week later, on or around August 12, Brown took a photograph of numerous one hundred dollar bills spread across his bathroom sink. > On or about October 10, 2016, Wylam took Brown to a San Francisco Giants playoff game. Wylam bought both tickets—for seats only a few feet from the field—and paid more than $2,500 for each ticket. Brown understood that Wylam bought the tickets, at least in part, to thank Brown for providing inside information about Infinera.
- throwaway0a5e 5y ago
  That makes much more sense. Where did you find the full text of the facts the government alleges?
  - johntb86 5y ago
    The complaint is under "Related Materials" on the right side of the page.

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bobbylarrybobby 5y ago

> Since Brown didn't trade I fail to see where he violated the law This article suggests that he may have engaged in conspiracy to commit securities fraud. https://www.latimes.com/business/la-fi-supreme-court-insider-trading-20161206-story.html https://www.latimes.com/business/la-fi-supreme-court-insider...

throwaway0a5e 5y ago
That article seems to be talking about Wylan, not Brown. >$1.5 million in stock profits by trading on confidential tips that originated from his brother-in-law, an investment banker in California. Brown may have violated some minor regulatory laws depending on the specific details of his employment but you generally need to trade, benefit or have reason to think trading is happening on your info in order to get slapped for insider trading.

johntb86 5y ago

The SEC complaint mentions this: > On August 5, 2016, Brown—whose tips enabled his friend, Wylam, to make nearly one million dollars—texted his then-girlfriend to inform her that he was going to Wylam’s house to, among other things, “talk to him about $.” One week later, on or around August 12, Brown took a photograph of numerous one hundred dollar bills spread across his bathroom sink. > On or about October 10, 2016, Wylam took Brown to a San Francisco Giants playoff game. Wylam bought both tickets—for seats only a few feet from the field—and paid more than $2,500 for each ticket. Brown understood that Wylam bought the tickets, at least in part, to thank Brown for providing inside information about Infinera.

throwaway0a5e 5y ago
That makes much more sense. Where did you find the full text of the facts the government alleges?
- johntb86 5y ago
  The complaint is under "Related Materials" on the right side of the page.