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ARTICLE · 15 NOVEMBER 2007

Insider Trading Is Back

Remember Ivan Boesky, Dennis Levine, and Michael Milken? Many Wall Street professionals and corporate executives are too young to remember the insider trading scandals of the 1980s. And that is the problem. Insider trading cases against Wall Street professionals and corporate executives are back in a big way.

United StatesCorporate/Commercial Law

Remember Ivan Boesky, Dennis Levine, and Michael Milken? Many Wall Street professionals and corporate executives are too young to remember the insider trading scandals of the 1980s. And that is the problem. Insider trading cases against Wall Street professionals and corporate executives are back in a big way.

Following the high profile insider trading cases in the 1980s, there were no SEC enforcement actions against Wall Street professionals between 1990 and 1995, and there were only cases against ten such individuals between 1995 and 2000. Now, in the first half of 2007, the SEC has sued over 20 professionals for insider trading.

Most of the SEC enforcement actions brought this year against Wall Street professionals and corporate executives involve insider trading in advance of mergers and acquisitions. And to be sure, the up tick in mergers and acquisitions activity in the past year has provided fertile ground for SEC enforcement actions. The following are examples:

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