When the U.S. Supreme Court issued its decision in Salman v. United States, it was anticipated that it would provide much needed clarity to the financial community, the S.E.C. and U.S. prosecutors as to what activity does and does not constitute insider trading. However, the cases filed and the court decisions issued since the Salman decision have shown that there is still a significant ambiguity regarding the nature of the “personal benefit” which must be received by the tipper of inside information and the requisite relationship which must exist between the tipper and tippee, in order for insider trading liability to attach. This ambiguity was highlighted most recently in the Second Circuit’s split decision which upheld the conviction of Mathew Martoma.
This program, led by attorney Ralph Siciliano, will discuss the holding in the Salman case as well as the earlier Second Circuit decision in U.S. v. Newman, and how those decisions affected the landscape of the law governing insider trading and government prosecutions which followed. He will explore the facts of recent indictments, including the recently filed charges against Michael Rivas, the conviction of Billy Walters, and the case of Joseph Reggierri in which the SEC Commissioners affirmed the dismissal of insider trading charges brought by the SEC’s Enforcement Division. Each of these cases, as well as the Second Circuit’s decision in the Martoma case, offer insights as to how the court and prosecutors are navigating the altered landscape created by the Salman decision.
Political intelligence as a form of inside information has also become a focus of prosecutors, as reflected on the recent indictment filed in the case of U.S. v. Blaszcak. Mr. Siciliano will explore this “new frontier” of insider trading liability as well.
As head of the firm's Governmental and Regulatory Investigations Practice, Ralph Siciliano represents investment advisors, private funds, broker-dealers and their associated persons, and officers and directors of publicly held companies in connection with investigations and enforcement proceedings brought by federal and state authorities and self-regulatory organizations, including the SEC, CFTC, FINRA, offices of the United States Attorney, and State Attorneys General. Having held senior enforcement positions in the New York Office of the U.S. Securities and Exchange Commission, Ralph has extensive experience dealing with federal and state regulatory agencies and self-regulatory organizations. Ralph also represents officers and directors of public companies and financial services institutions and individuals in securities-related litigations, including the defense of class actions, shareholder derivative actions and claims by bankruptcy trustees. Ralph also has served as counsel to Audit Committees and other Special Committees of the Boards of Directors of public and not-for-profit corporations in connection with corporate governance issues.
Ralph has been selected for inclusion in New York Super Lawyers for 2011-2014.
Great overview. Was very organized and easy to follow. I love how he put things in to context
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