Case library · Wall Street
The Banker's Phone Calls
United States v. McDermott (2001)
Charge: Insider trading and conspiracy to commit insider tradingCourt: U.S. Court of Appeals, Second CircuitState: New YorkDocket: Wall Street
The facts
The accused ran an investment bank that advised on bank mergers. He was having an affair with a woman, and they spoke about 800 times by phone. Prosecutors say he gave her stock tips based on secret merger plans. Without his knowledge, she passed the tips to another man, and the two made about $170,000 from 21 trades. He was charged with conspiring with both of them. He says there is no direct proof he passed secrets, only phone records lining up with trades.
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. McDermott, 245 F.3d 133 (2d Cir. 2001)
Read more at law.resource.org. The source reveals the outcome.