In Major Blow to Enforcers, 2d Cir. Upsets Fund Execs‘ Insider Convictions


Eugene Goldman, as a former SEC enforcement lawyer, assessed the significance of an appellate court’s ruling that vacated the convictions of two former hedge fund executives charged with insider trading. “This decision by the Second Circuit, within which lies Wall Street, could stop multiple insider trading cases in their tracks,” Mr. Goldman commented. “Although [it is] a criminal case, read literally, the standards imposed to prove a violation may also apply to SEC enforcement cases.”