Did the Supreme Court Just Rewrite Preet Bharara's Legacy on Wall Street Crime?
Insider Trading: Supreme Court Won't Review Hedge Funds
The Supreme Court made a handful of hedge fund traders very happy today by declining to review an insider trading decision that dealt a blow to Preet Bharara's campaign to crack down on Wall Street.
Todd Newman, formerly a portfolio manager at Diamondback Capital, and Anthony Chiasson, of Level Global Investors, were convicted in 2012 of trading on confidential information they had received second hand. An appeals court overturned their convictions in 2014 and made it harder to prosecute insider trading in the process. The court said that a trader must know that information he receives about a company was leaked in return for some benefit of consequence for trading on it to be a crime.