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Supreme Court Denies Request to Hear Insider Trading Case

Publisher: The NY Times
Authors: Matthew Goldstein and Adam Liptak

The Supreme Court on Monday refused to review an appeals court decision that made it harder to prosecute insider trading and threatens to undermine a number of convictions.

As is their custom, the justices gave no reasons for turning down the case. The decision dealt a blow to Preet Bharara, the United States attorney in Manhattan, whose office oversaw a sweeping crackdown on insider trading in the $3 trillion hedge fund industry.

The high court’s decision not to hear the case is a final vindication for Todd Newman and Anthony Chiasson, two former hedge fund managers who were prosecuted by Mr. Bharara’s office and convicted in December 2012. The Justice Department was seeking review of an appellate decision last year that overturned their insider trading convictions.

The court’s decision could also jeopardize a number of other insider trading convictions secured by Mr. Bharara’s office, including one against Michael Steinberg, a former trader who worked for Steven A. Cohen, the billionaire investor.

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