Case library · Cover-Up
The Stop-Loss Story
United States v. Stewart (2006)
Charge: Conspiracy, false statements to federal investigators, obstruction of an agency proceedingCourt: U.S. Court of Appeals for the Second CircuitState: New YorkDocket: Cover-Up
The facts
A well-known businesswoman owned shares in a drug company. One morning her stockbroker's assistant told her the company's chief executive was trying to sell his own shares. She sold all of hers the same day. The next day the company announced bad news and the stock fell. Investigators asked why she sold. She and her broker said they had agreed weeks earlier to sell if the price dropped to a set level. Prosecutors say that story was invented to hide the real reason. She was tried for lying and obstruction, not for insider trading itself.
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. Stewart, 433 F.3d 273 (2d Cir. 2006)
Read more at law.justia.com. The source reveals the outcome.