Insider Trading
Most people think of insider trading as an illegal action, but it is actually permitted in certain situations. Legally, members of a corporation can trade stock in their own companies as long as it is reported to the United States Securities and Exchange Commission, or SEC. Illegal insider trading occurs when people use insider or nonpublic information when buying or selling securities, or stocks.
If you are aware of any breaches of SEC policy in your company, such as an executive’s failure to report trades, you should report this to the government. Should your information lead to a successful case against the lawbreaker, you can receive part of the damages awarded to the government. This is called Qui Tam law. To discuss your case, contact an experienced Qui Tam attorney from Tycko & Zavareei, LLP, today at 202-973-0900.
Types of Insider Trading
Illegal insider trading can involve employees, officers, and executives in a company as well as people separate from the company. There are several types of insider trading cases that have been brought by the SEC recently, such as:
- Directors, workers, and officers of a corporation trading corporate securities after learning of significant, nonpublic developments within the company
- Friends of directors, employees, and officers of a corporation who acted on insider information to buy and sell stocks based on nonpublic corporate developments
- Employees and officers of financial institutions such as banks who traded stocks after receiving insider information through their work with a corporation
- Government employees who utilized confidential corporate information that they received through their work
Now, with the Restoring America To Financial Stability Act of 2010, the U.S. government has reaffirmed its strong intentions to pursue those who commit securities fraud. You can help deter this illegal act when you fight back against insider trading.
Contact Us
Insider trading is unfair and undermines the public’s faith in the stock market, which can lead to severely adverse economic conditions. If you know of any illegal insider trading, you should discuss the situation with a Qui Tam attorney to decide on the best course of action. Contact a qualified Qui Tam lawyer from Tycko & Zavareei, LLP, at 202-973-0900 today.
