The U.S. Department of Justice has petitioned the U.S. Supreme Court to overturn its ruling in U.S. v. Newman et al. that raised the bar for prosecuting insider trading cases. Law360 interviewed Polsinelli’s Brian McEvoy on why the appeal is significant. McEvoy focuses his practice on white collar criminal defense handling health care fraud cases and other federal economic criminal matters.
“The government has prosecuted more than 80 federal criminal insider trading cases in the Southern District of New York since 2009, often where there was no financial benefit to the tipper, but involved simply friends or colleagues exchanging inside information. The significance of the government appealing the Newman decision underscores the DOJ's aggressive stance in prosecuting insider trading cases. This sends a clear message that the government seeks to continue to prosecute insider trading cases where material, nonpublic information is passed in exchange for both direct benefit such as money, or as in Newman, in exchange for an indirect benefit like friendship.”