U.S. Supreme Court to consider increasing difficulty to prosecute insider trading

WASHINGTON -- The Supreme Court signalled Tuesday that it could make insider trading cases harder to prosecute nationwide, dealing another blow to federal prosecutors.

See Full Article

The justices said they would hear the appeal of an Illinois man who is serving a three-year prison term after being convicted of trading on leaked inside information.

The court decided to take on the appeal of Bassam Yacoub Salman over the opposition of the Justice Department and a little more than three months after the justices sided against federal prosecutors who wanted to reinstate similar convictions in New York against two high-profile hedge fund managers.

The Justice Department had warned that warned that overturning the convictions could hinder the government's campaign to curb insider trading on Wall Street, a crackdown that has resulted in more than 80 arrests and 70 convictions over several years. But that argument made no headway at the Supreme Court in October.

Salman was convicted of 2013 of making investments based on confidential information he received from a member of his extended family who worked in the health care investment banking group at Citigroup Global Markets in New York.

Prosecutors said Salman was part of a $5.3 million insider trading scheme that involved the investment banker, Maher Fayez Kara, of San Carlos, California, and other family members. Kara pleaded guilty to conspiracy and securities fraud charges.

Responding to Salman's Supreme Court appeal, the Justice Department said there was no reason to take up his case after denying the government's appeal in October.

The justices offered no elaboration on their decision to hear the case.

It is not clear whether arguments will take place in April or wait until the court's new term begins in October. Salman is supposed to be released from federal prison in July.

The case is Salman v. U.S., 15-628.



Advertisements

Latest Economic News

  • Enbridge spill east of Edmonton estimated at 10,000 litres of crude oil

    Economic CTV News
    CALGARY -- The National Energy Board says about 10,000 litres of light crude oil spilled Monday at a storage site east of Edmonton. Enbridge said that as of Tuesday morning, it had recovered almost all of the oil, which had leaked from a tank value in an industrial area of Strathcona County. Source
  • B.C. reports 64 pipeline benefit deals with 29 northern First Nations

    Economic CTV News
    VICTORIA - The British Columbia government says it has completed benefit agreements with 90 per cent of the eligible First Nations along four proposed natural gas pipeline routes across northern B.C. The Ministry of Aboriginal Relations says 64 natural gas pipeline benefits contracts have been signed with 29 First Nations and that most include initial financial payments worth over $1 million. Source
  • Disney CEO Bob Iger gets contact extension to July 2019

    Economic CTV News
    NEW YORK -- Disney CEO Bob Iger is getting a one-year contract extension. The Walt Disney Co. on Thursday ended any speculation that Iger would retire this year, extending contract to July 2, 2019. Source
  • Canada gets green light to join controversial China-led infrastructure bank

    Economic CTV News
    OTTAWA -- Canada has been approved to join a controversial new international infrastructure bank led by China. The Asian Infrastructure Investment Bank says Canada is among 13 applicants approved for membership in the bank by its board of governors. Source
  • Disney, Universal battle tax bills for Florida theme parks

    Economic CTV News
    ORLANDO, Fla. -- It takes a lot of land to accommodate Cinderella's castle, The Wizarding World of Harry Potter and Epcot's 11-country World Showcase -- and a hefty purse to pay the property taxes on it. Source
  • Saskatchewan reviewing whether charges warranted in 2016 Husky oil spill

    Economic CTV News
    REGINA - The Saskatchewan Ministry of Justice is reviewing whether charges are warranted against Husky Energy for its role in a major oil spill last summer. The department is reviewing Husky's response to alarms before the spill and the delay in shutting down the system. Source
  • Valeant CEO got US$63M in compensation

    Economic CTV News
    LAVAL, Que. -- Valeant Pharmaceuticals says its chairman and CEO received US$62.7 million in compensation for eight months of work last year, even as the Quebec-based drug giant reported a "disappointing" financial performance. In a proxy report ahead of its May 2 annual meeting, Valeant says Joseph Papa's compensation included US$42 million in stock awards, US$10 million in stock options, an US$8-million signing bonus and a salary of US$980,769 salary. Source
  • New Valeant Pharmaceuticals CEO got almost $63M US in compensation

    Economic CBC News
    Valeant Pharmaceuticals says its chairman and CEO received $62.7 million US in compensation for eight months of work last year, even as the Quebec-based drug giant reported a "disappointing" financial performance. In a proxy report ahead of its May 2 annual meeting, Valeant says Joseph Papa's compensation included $42 million US in stock awards, $10 million US in stock options, an $8-million US signing bonus and a salary of $980,769 US salary. Source
  • U.S. to recommend approval of Keystone XL: AP sources

    Economic CTV News
    WASHINGTON -- Senior U.S. officials say the State Department will recommend approval of the Keystone XL pipeline, clearing the way for the White House to formally approve it. Two officials say Undersecretary of State for Political Affairs Tom Shannon will issue the recommendation Friday. Source
  • Finance minister doesn't rule out future changes to capital gains taxes

    Economic CTV News
    Ottawa made no changes in the federal budget to the way capital gains are taxed, but Finance Minister Bill Morneau isn't completely ruling out changes in the future. When asked about possible changes to the way profits from selling off personal assets are taxed in the future, Morneau left the door open. Source