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.


Latest Economic News

  • Former Expos owner, Seagram's titan Charles Bronfman reflects on life as a 'late bloomer'

    Economic CTV News
    He steered Seagram's Co. Ltd. to great success and brought the Montreal Expos to Canada, but Canadian billionaire Charles Bronfman insists he was a "late bloomer," after years of struggling with low self-esteem in his early life. Source
  • iPhone 7 sales, holiday outlook in focus as Apple reports after the bell Tuesday

    Economic CBC News
    Apple Inc. will report fourth-quarter and full-year earnings after the close of trading Tuesday, with analysts expecting the tech giant to report a third straight quarterly revenue drop and its first drop in annual revenue in 15 years. Source
  • Trilogy estimates pipeline spill at 250,000 litres of oil and water

    Economic CTV News
    CALGARY - Trilogy Energy Corp. estimates a leak from its pipeline in west-central Alberta released 250,000 litres of oil and water before it was discovered in early October. The company announced the preliminary estimate Tuesday, the same day the Alberta Energy Regulator formally launched an investigation of the spill 16 kilometres northeast of Fox Creek, Alta. Source
  • Caterpillar stung by global economic funk

    Economic CTV News
    PEORIA, Ill. -- Caterpillar's third-quarter profit was essentially cut in half with the global economy stuck in a funk, and the company said that it expects that malaise to extend into next year. The construction and mining equipment maker lowered its outlook for the year and shares of Caterpillar slipped almost 2 per cent in midday trading Tuesday. Source
  • Report: Gunmen still control metals mined for modern gadgets

    Economic CTV News
    SAN FRANCISCO -- Violent gunmen still menace pick-and-shovel miners in eastern Congo, a new report finds, despite years of efforts to loosen their grip by local reformers, Western activists and companies like Apple and Intel that use minerals from the African region in their products. Source
  • Seniors watch twice as much television as young people do, CRTC numbers show

    Economic CBC News
    Canadians are watching less TV and radio but consuming more media than ever before, new numbers from the CRTC show. According to the Canadian Radio-television and Telecommunications Commission, Canadians are listening to an average of 16.2 hours of radio per week, a number which is down almost two per cent from 2014's level. Source
  • Fiat Chrysler boosts earnings forecast on strong North American results

    Economic CBC News
    Fiat Chrysler Automobiles on Tuesday increased its 2016 earnings forecast for the second time this year after strong results in North America helped it return to a profit in the third quarter. The company reported an adjusted net profit of 606 million euros, compared with a loss of 387 million euros in the same period last year. Source
  • U.S. judge approves $15B settlement in Volkswagen emissions scandal

    Economic CBC News
    A U.S. federal judge in San Francisco has approved a $15 billion US court settlement of most claims against Volkswagen for its emissions-cheating scandal. U.S. District Judge Charles Breyer signed the order Tuesday approving the largest auto-scandal settlement in the U.S. Source
  • BlackBerry unveils latest smartphone designed by outside firm

    Economic CBC News
    BlackBerry released on Tuesday its second smartphone designed and built externally, the latest development in the company's push away from manufacturing handsets as it focuses more on its security software. The DTEK60, designed and manufactured by TCL Corp. Source
  • Atlantic provinces need to shed trade, regulatory barriers: study

    Economic CTV News
    HALIFAX -- Atlantic Canada needs a deal to reduce regulatory and trade barriers for areas as basic as the rules on trucks that carry goods around the region, says a report by an economic think tank. Source