Insider Trading - Will The U.S. Supreme Court Roll Back Newman?

Insider Trading - Will The U.S. Supreme Court Roll Back Newman?

Oct 07, 2016

Client Alert

Brownstein Client Alert, October 7, 2016

On Wednesday, Oct. 5, 2016, the U.S. Supreme Court heard oral arguments in Salman v. United States—a case that could significantly impact the current status of insider trading law.
The case centers on a Chicago grocery wholesaler, Bassam Salman, who was convicted of insider trading for receiving second-hand stock tips from a family member. Salman’s brother-in-law, Maher Kara, was an investment banker at Citigroup. Maher passed stock tips to his older brother Mounir (“Michael”) Kara, who ran a hazardous waste business in Chicago and Michael in turn passed these tips on to Salman. Salman was convicted of making $2.1 million on Kara’s tips (which he deposited into a joint account with his wife’s sister and her husband).

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