Case library · The Con
Boardroom Calls To A Trader
United States v. Gupta (2014)
Charge: Conspiracy to commit securities fraud and securities fraud (insider trading)Court: U.S. Court of Appeals, 2d Cir. (on appeal from S.D.N.Y.)State: New YorkDocket: The Con
The facts
A director of a large investment bank took part in confidential board calls during a financial crisis. Within minutes of one call ending he telephoned the founder of a hedge fund. The fund bought the bank's shares just before news broke of a huge rescue investment. After a later call about a quarterly loss the bank had not yet announced, the fund sold. He denied passing any secret. The law here requires proof the tipper got some personal benefit.
You have the facts the court had. Guilty or not guilty? Call it in the game with your friends, then see what the court actually decided. Wrong call, you drink.
Citation: United States v. Gupta, 747 F.3d 111 (2d Cir. 2014) (No. 12-4448)
Read more at law.justia.com. The source reveals the outcome.