Tip slip

11 September 2019 By Reynolds Holding

The U.S. Congress seems closer than ever to clarifying rules that have perplexed investors, watchdogs and judges for decades. With prosecutors pushing legal limits and dodgy traders slipping through loopholes, reform is overdue. Bipartisan support suggests it may finally happen.

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On Aug. 27, a federal judge in New York set a date for the trial of a former hedge-fund manager on charges of insider trading. U.S. District Judge Paul Gardephe ordered the trial of former SAC Capital Advisors trader Richard Lee to begin on Dec. 9, more than six years after Lee pleaded guilty to insider trading. The judge allowed Lee to withdraw the guilty plea on June 21, saying recent changes in how judges interpret current law meant that there were not enough facts to support it.

On May 9, the Financial Services Committee of the U.S. House of Representatives passed by voice vote the bipartisan Insider Trading Prohibition Act, which would define illegal insider trading. The bill awaits a vote by the full House.

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