Justices seem wary of limiting insider trading prosecutions
WASHINGTON (AP) _ The Supreme Court seems reluctant to place dramatic new limits on the ability of prosecutors to crack down on insider trading on Wall Street.
Most of the justices suggested during arguments Wednesday that insider trading violates the law even if the insider supplying corporate secrets to a friend or relative doesn’t receive anything of value in return.
The court is deciding whether to overturn the conviction of an Illinois man convicted of making investments based on inside information he received from a member of his extended family.
Government officials say free sharing of corporate secrets with friends or relatives is just as damaging to the nation’s securities markets as trading inside information for a cash benefit.