Hacker May Get To Keep Insider Trading Windfall — Because He Obtained Info Illegally
from the say-that-again dept
The NY Times is covering a bizarre anomaly associated with “insider trading laws” in the US that may allowed a guy
to keep the nearly $300k he scammed by hacking into computers to learn of earnings info before it was actually released. Apparently, the way US securities laws work, if you legally obtain the insider info, you can’t trade on it. However, if you illegally obtain the info, you can trade on it, though you’re certainly potentially liable for the illegal actions that allowed you to get the info. In this case, the illegal actions were breaking into this computer. However, rather than being charged with computer fraud, he was charged with insider trading. In other words, he was basically charged with the wrong crime, and that may mean that he gets to keep the $300k and go on his merry way.