Insider Trading Now a Whistleblower Claim With Reward Incentives

Insider training where corporate executives and employees who used secret insider information to make trades with their company’s stock, now falls within the new whistleblower provisions of a new law passed by congress. Under this law, whistleblowers reporting to the SEC will get a reward of upto 30% of the penalties imposed by the government on the inside trader. This gives substantial new incentive for reporting and the government is expecting a tidal wave of claims. Insider trading is generally considered corporate directors and workers who traded their corporation’s securities without properly reporting the trades to the SEC; Friends, associates, and family members who traded a corporation’s stock based on sensitive information they received from someone at the company ;employees of financial institutions such as banks or brokerage firms who traded stock based on information they received through providing necessary services to a corporation; Government employees who used their positions to trade securities with nonpublic tips. If you know of insider trades and wish to seek the confidential advice of counsel, contact Attorney Jeffrey A. Newman.