©2018 by Ambrose Law

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

Questions? Consult Request?

CALL: 814 459-5900

Please reload

Recent Posts

Be Careful Talking to Your Golfing Buddies: It Is Now Undoubtedly Illegal to "Gift" Insider Information

January 6, 2017

 

For a number of years, stock traders and lawyers in the U.S. all believed that the law concerning insider trading was murky at best. No one knew exactly what was or wasn't legal. 

 

On December 6th, 2016, the Supreme Court stated that it easily settled this dilemma.

 

It was never doubted that a trader who paid cash to an insider for privileged information was engaging in criminal activity and would face prison. BUT, what about the trader who went golfing with his buddies and got a tip from one of them as a gift?

 

In a unanimous decision, with an opinion by Justice Samuel Alito, Jr., the Supreme Court declared that it is in fact illegal to get insider information as a mere gift. Salman v. United States, No. 15-628 (U.S. Dec. 6, 2016)

 

For example, the CEO who makes a gift of insider information to his brother-in-law on the back nine, and the brother-in-law himself, remain at rsk for insider trading convictions - even if there wasn't a single penny exchanged. 

Share on Facebook
Share on Twitter
Please reload

Please reload

Archive