Ex-Boyfriend Of Biglaw Associate Arrested For Insider Trading., Could She Be Next?

You’ll never believe what’s happened to my co-worker, Sally Smith! Her boyfriend, who worked at some big investment bank on Wall Street, was arrested this morning by the FBI and SEC on insider trading charges. The SEC alleges that he made upwards of $2 million by secretly leaking nonpublic information to his girlfriend – who just happens to be an associate at one of New York’s top law firms – and other friends of theirs in the financial industry.

Insider trading: what to look out for

It’s important to note that insider trading is not necessarily illegal, depending on the type of information the person has access to. However, it can be very lucrative, which is what makes it so tempting. There are four types of insider trading: Tippee Trades, Tipper Trades, Affiliated Transfers, and Hedge Information. Each one carries different degrees of a legal risk.

A tippee trade is when a person who is entrusted with nonpublic information about a company trades on that information, passing it to another person.

For example, if an investor’s friend who works for IBM informs them of a big sale IBM is going to make before it’s publicly announced, then buy and sell stock based on that tip. The tippee trade in effect tells other investors about key news about a company before it’s been released to the public market. Anyone who trades on inside information may be liable for insider trading by breaking one of two laws:

criminal or civil law. Criminal laws apply when prosecutors feel there has been actual fraud committed against shareholders; civil laws apply when prosecutors cannot meet certain requirements needed to prove fraud or insider trading under criminal law.

The difference between corporate and personal insider trading

While there are many different variations of insider trading, corporate and personal, this particular case is an example of a criminal charge for personal insider trading. This type of information typically pertains to things like buying or selling stock tips between friends and family members, which may not be illegal on its own. However, the phrase insider trading does not refer to a criminal offense. Instead,

it relates to a situation in which someone who possesses confidential or nonpublic information about a corporation might use that information to make trades on the stock market that are outside the law.

How an ex-boyfriend could have access to inside information

Sometimes, we make the mistake of being romantically involved with people who have access to insider information, like a big law associate. That gives him or her privileged access to data that could lead to insider trading and unfair advantages on the stock market.

So it may not be a coincidence when your ex from law school suddenly invests in that company you told him about six months ago, just as it was going public. These trades happen so often that they’ve become a cliché!

The best way to protect yourself is to avoid giving out inside information in conversation. That’s easy enough, but what if your ex was already trading on insider info when you dated him or her? What can you do if your new boyfriend or girlfriend seems so obsessed with their stocks that they’re neglecting their other relationships and responsibilities in life?

Whatever you do, don’t say anything – keep it in your pants! You could be charged with insider trading too if you give out information about companies or jobs based on confidential data. It’s just not worth it.

What should I do if my boyfriend shares confidential information from his job: There are a few things you should do if your boyfriend shares confidential company data with you, like inside Boyfriend r stock info.

What you can do if you suspect insider trading

If you believe that someone close to you is involved in insider trading, you should immediately document the information that led you to this conclusion, file a complaint with the Securities and Exchange Commission, and provide the SEC with any documents or other evidence of the illegal activity.

As we can see from the example of the Ex-Boyfriend Of Biglaw Associate, even people outside of your social circle could be potential insiders and trading on their nonpublic information. Insiders are often easy to identify–they could be your employees or ex-employees who know about your company’s plans before they’re announced or co-workers who have sensitive knowledge because they sit next to you. But just because a Boyfriend someone seems like an insider doesn’t mean they are.

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