Insider Trading in 2013: It Was The Best of Years, It Was The Worst of Years…

“In 2013, the SEC filed 43 insider trading actions […] and DOJ brought criminal charges involving insider trading against 20 individuals or entities.” (Morrison & Foerster)

Last year was another year in aggressive insider trading enforcement, write attorneys at Morrison & Foerster in their comprehensive 2013 Insider Trading Annual Review. Some highlights on the year:

  • Department of Justice indicted SAC Capital Advisors LP, ultimately leading to the hedge fund agreeing to plead guilty to insider trading violations and to pay DOJ and the Securities & Exchange Commission a combined $1.8 billion penalty to settle criminal, civil and forfeiture allegations.
  • Mark Cuban triumph[ed] in his nearly decade-long war with the SEC… [ending] approximately 10 years of legal wrangling between Cuban and the SEC. [I]t took a jury less than five hours to reach a verdict in Mr. Cuban’s favor.
  • [T]he SEC made news by securing against Rajat Gupta a hefty $13.9 million penalty – the statutory maximum of three times the gains made on tips received from him.
  • This year saw an uptick in multi-jurisdictional coordinated global enforcement efforts. U.S. regulators persisted in robust international enforcement while foreign regulators pursued large insider trading matters and certain countries adopted enhanced insider trading legislation.
  • The SEC also obtained a default judgment this year in a case filed in 2010 against a Russian defendant and his wife (as a relief defendant), for insider trading ahead of numerous health care-related transactions.

Read the report in full below:

Related reading:

Read more on Insider Trading at JD Supra Business Advisor>>