Proskauer Rose Discusses SEC Insider Trading Investigations

The SEC has continued to pursue a number of insider trading cases this year, both large-scale and small.  Some of those matters involved trades that yielded relatively small amounts of profits: $40,000-$60,000.  Why does the enforcement division spend resources on these smaller cases?  First, they serve as a reminder that violations can be identified, even if trades are relatively small.  And the cases are relatively easy to prove when a connection to an insider source can be readily identified.  More importantly, these cases demonstrate that the SEC is uncovering new leads through data analysis.

It is worth noting that the … Read more