In a recent Second Circuit decision, a divided three-judge panel drew a stark distinction between two federal securities fraud statutes likely providing a blueprint for future criminal prosecutions for insider trading. In United States v. Blaszczak, a Second Circuit panel held that the Dirks “personal benefit” test, which applies to certain civil and criminal insider trading charges, did not apply to criminal insider trading charges brought under Title 18 of the federal criminal code. This decision could have significant implications for future insider trading prosecutions.
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