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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