The Second Circuit, in that 2014 decision, overturned the insider trading convictions of the hedge fund managers Todd Newman and Anthony Chiasson. They nonetheless have resumed filing insider trading cases in which they have additional evidence of a personal benefit. One of the most prominent critics of judges determining what constitutes insider trading was Justice Antonin Scalia, whose death this year created the vacancy on the bench. Justice Scalia argued that only Congress — rather than agencies, prosecutors or judges — may define what conduct amounts to insider trading. While Maher Kara was sentenced to three months of home confinement, Mr. Salman was sentenced to three years in prison.

Source: New York Times October 05, 2016 16:30 UTC