Commercial Litigation and Arbitration

Insider Trading — Conviction of Tippee Despite Acquittal of Tipper

In United States v. Evans, 2007 U.S. App. LEXIS 11344 (7th Cir. May 15, 2007), the Seventh Circuit upheld the insider trading conviction of a tippee despite the fact that his alleged tipper was acquitted and the tippee was himself acquitted of conspiring with the alleged tipper (relying on Standefer v. United States, 447 U.S. 10 (1980), in which the Supreme Court held that a defendant accused of aiding and abetting in the commission of a federal offense (making gifts to a public official in violation of 18 U.S.C. § 201(f)) may be convicted after the named principal has been acquitted of the offense).

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