2nd Circuit gives SEC key ruling in insider trading cases

The 2nd Circuit ruled Contorinis is responsible for both his own gains as well as those of his company from insider trading

Chalk one up for the Securities and Exchange Commission (SEC): A key 2nd Circuit Court of Appeals ruling has given the SEC more leverage in insider trading cases.

On Feb. 18, the 2nd Circuit ruled that Joseph Contorinis, a former portfolio manager at Jefferies Group Inc., must forfeit $7.26 million following a 2010 conviction of insider trading. The sum includes both Contorinis’ profits on illegal trades and the gains made by his employer from the transactions.

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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