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The Rise of Insider Trading As a Title 18 Offense  (Volume 53, Number 5– March 11, 2020)

Author:  Tom Hanusik.; Rebecca Monck Ricigliano.; Nimi Aviad.

Source: Volume 53, Number 05, March 1 2020 , pp.49-56(8)

Review of Securities & Commodities Regulation


In this article, the authors introduce their subject by first tracing the evolution of the tangled 10b-5 insider trading law in the courts. They then turn to the growing practice of prosecutors to add the securities fraud provision in 18 U.S.C. §1348 to their charging instruments in insider trading cases. They close with the recent Blaszczak case in which the Second Circuit declined to apply the “personal benefit” test to a Title 18 prosecution for insider trading.

Keywords: Chiarella v. U.S.; Dirks v. SEC; Material Nonpublic Inside Information (“MNPI”); Personal Benefit Requirement; U.S. v. Martoma; United States v. Pinto-Thomaz; Securities Fraud under 18 U.S.C. § 1348

Affiliations:  1: Crowell & Moring, LLP; 2: Crowell & Moring, LLP; 3: Crowell & Moring, LLP.

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