On Thursday, the Obama administration requested that the United States Supreme Court reinstate convictions for security fraud against two hedge fund portfolio managers. The Obama administration argues that the federal appeals court’s ruling in the case has a detrimental effect on its ability to prosecute other insider trading cases.
According to the administration, Supreme Court Justices should reinstate convictions against Anthony Chiasson and Todd Newman.
The appeals court ruled that the government’s case against Chiasson and Newman was too far removed from the original source of the inside information. The government argues that the appellate court’s ruling is in conflict with a 1983 Supreme Court ruling and the rulings of several other federal appellate decisions.
According to Solicitor General Donald Verrilli Jr., not changing the decision in Chiasson and Newman’s case would, “hurt market participants, disadvantage scrupulous market analysts, and impair the government’s ability to protect the fairness and integrity of the securities markets.”
For more on this, read the article from Yahoo! News titled: “Prosecutors ask justices to review insider trading case.”