Case Study: United States v. Parigian
This case tested the limits if criminal insider trading laws. In the case, the defendant got an insider tip from a golfing buddy who, in turn, got tipped off by company insiders. Does that structure meet the "breach of a duty of trust and confidence" element Necessary for the crime of insider-trading? Also, there is a requirement that the person who received the confidential information receive some sort of benefit for the crime to apply. Is it enough that person who received the information tip off his golf buddies loosely in exchange for higher standing in their group and informal gifts from the circle of buddies enough to meet the elements? These were some of the interesting questions that the Fifth Circuit Court of Appeals had to resolve.
The case can be found here: