Bharara Unhappy With Insider-Trading Reversal

Dec 12 2014 | 1:18pm ET

His broad theory of insider-trading shot down by a federal appeals court, the U.S. Attorney in New York warns that the ruling could severely impair his office’s efforts to combat financial fraud.

“We are still assessing the Court’s decision, which appears in our view to narrow what has constituted illegal insider trading,” Bharara said.

The U.S. Second Circuit Court of Appeals on Wednesday overturned the convictions of two hedge-fund managers, Anthony Chiasson and Todd Newman. The court found that prosecutors must show that those accused of insider trading knew the sources of their information were receiving a personal benefit for revealing it.

In spite of his disappointment, Bharara insisted that the ruling “affects only a subset of our recent cases, and in those cases—as in all our criminal cases—we investigated and prosecuted misconduct based on our good faith assessment and understanding of the facts and the law that existed at the time.”

Bharara’s office has won more than 80 insider-trading convictions in recent years—mostly through guilty pleas.

In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...


CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...


FINalternatives Trending

From the current issue of