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The Real Crime Diary Blog Property and Financial Crimes Why Prosecuting Insider Trading Is So Problematic
Property and Financial Crimes

Why Prosecuting Insider Trading Is So Problematic

  • by
  • June 19, 2024
  • 47 Comments
  • 1 minute read
  • 41 Views
  • 2 weeks ago



Insider trading is a type of market abuse when an advantageous trade is made based on material nonpublic information. The issue is there’s not a specific law defining what insider trading is, which makes it difficult to prosecute cases as they arise. Additionally, a major component of prosecuting a case is proving intent, which requires a lot of evidence to support the claim. Watch the video above to learn more about what insider trading is and why it’s so difficult to stop.

Chapters:
00:00 — Introduction
01:22 — Defining insider trading
03:19 — Prosecuting insider trading
07:41 — Who gets investigated?
10:27 — Activist investors

Produced by: Charlotte Morabito
Additional Reporting by: Mary Hanan, Meghan Lisson
Camera by: Junghun Park, Gerard Miller, Marco Mastrorilli, Bob Briscoe
Audio by: Paul Alfe, Francesco Lo Cascio, Juan Roche
Edited by: Nora Rappaport
Animation: Mallory Brangan
Supervising Producer: Lindsey Jacobson

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Why Prosecuting Insider Trading Is So Problematic

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47 Comments

  • Reply
    @orionliebowitz5368 June 19, 2024

    Pelosis anyone

  • Reply
    @shamrahman7436 June 19, 2024

    Bro these ppl will never arrest each other 😂

  • Reply
    @DMH-bt2zo June 19, 2024

    One crime (most) folks can get away with. Well, I don’t see how it ends good anyways.

  • Reply
    @silviabujor5690 June 19, 2024

    DISDRET Insite Trending 0 Investiment Pipo Disdret Garanty BANKARE BLOC Disdret SEMNEAZA CONGRESSMAN UK BUJOR SILVIA Labrinia Via Mariotti 21 tel

  • Reply
    @ashleybigger32 June 19, 2024

    Football (super bowls) and Kentucky derbies do this. They rig the game and race knowing people bet and some are given details on who to bet on. This happens all the time

  • Reply
    @ashleybigger32 June 19, 2024

    Football (super bowls) and Kentucky derbies do this. They rig the game and race knowing people bet and some are given details on who to bet on. This happens all the time

  • Reply
    @AYVYN June 19, 2024

    Insider? I hardly know her

  • Reply
    @Heresheis0818 June 19, 2024

    5-3

  • Reply
    @TheCOOLEYDOG June 19, 2024

    does "material information" include offering to pay off a near worthless bond that's in default after buying the majority of issued debt. then selling at higher value immediately while you pay off balance over time……..just seems that people should bet on things that they can influence.

  • Reply
    @chan90s June 19, 2024

    Wbt outsider trading like hidenburg research where they short the stock based on non public information. Law doesn't cover it

  • Reply
    @erandeser5830 June 19, 2024

    The reason insider trading is difficult because lawmakers know how to protect themselves.

  • Reply
    @sunnym.4077 June 19, 2024

    Then we have senators using insider knowledge to actively trade, like the Pelosi and McConnell families.

  • Reply
    @lilytea3 June 19, 2024

    0:00: 📈 Insider trading is difficult to prove and prosecute, with no clear definition, and the SEC often focuses on smaller cases rather than big offenders.
    3:43: 💼 Insider trading can be prosecuted through civil or criminal law, with the SEC handling civil litigation and the DOJ handling criminal cases.
    6:41: 🔍 Justin Paperny, a former securities fraud convict, now helps guide those accused of white collar crimes through investigations, sharing his experience and insights.
    8:46: 💰 Insider trading enforcement actions often target defendants who can't afford high-powered representation, but high-profile individuals have also been successfully prosecuted.
    11:45: 📈 The rise of meme stocks and social media influencers has raised concerns about market manipulation and the influence of retail investors.
    Recap by Tammy AI

  • Reply
    @sor3999 June 19, 2024

    13:37 We did answer that question. When Elon Musk tweeted he was taking the company private when he wasn't, knowing he has a lot of followers hanging onto his every word, and was fined for it.

  • Reply
    @user-ts7ns7bt2v June 19, 2024

    If I can only find out what companies the Gov will bankroll I can make bank. Can that work

  • Reply
    @ET_LWO June 19, 2024

    Isn’t there a loophole in making the information public (under technicality)?

    Doesn’t that make de amplification on social media platforms even more problematic ?

  • Reply
    @prettywitty9051 June 19, 2024

    In my circles we call what they try to describe as investment advice 😊

  • Reply
    @justice604 June 19, 2024

    Don't forget stock market manipulation by hedge fund market makers by naked shorting. Our proof is the failure to deliver list. 😂

  • Reply
    @LuisMendoza-pp9qi June 19, 2024

    They why do we even pay this SEC overpaid employees?!?!😡

  • Reply
    @Na0uta June 19, 2024

    Insider trade is a very easy thing to spot. We are just to scared to put a lable on it.

  • Reply
    @lurkingarachnid7475 June 19, 2024

    Well a bunch of politicians bought and sold stocks when news of covid came out but was only public to politicians

  • Reply
    @kevinfernandez9999 June 19, 2024

    It's hard to prosecute because a lot of powerful people do it and nobody wants to hurt their feelings.

  • Reply
    @anti-Antifuhcktard June 19, 2024

    Because you're not Nancy Pelosi

  • Reply
    @menghuitianya June 19, 2024

    I spent time to watch the entire story of the ads😂

  • Reply
    @sachaalary84 June 19, 2024

    Thé only way they can see the phrase on a google "how to do insider trading" is because they are spies who are not going to give their secrets of finding cases but yet we trust all of them because cnbc never looks on the dark side of the sec. Plus how to they even find criminals, by not respecting privacy laws.

  • Reply
    @lukeben1596 June 19, 2024

    Most people venture into crypto to be a millionaire meanwhile I just want to be debt free

  • Reply
    @user-iq7dk1ze1x June 19, 2024

    just ask chuck Schumer and nancy pelosi for advice on nVidia stock

  • Reply
    @burrybondz225 June 19, 2024

    why is cnbc better than msnbc,fox and cnn

  • Reply
    @johnd.5601 June 19, 2024

    I filed a claim to the SEC over some trades that stood out as usual. In the next 3 days, those trades stopped. I still didn't get paid back. There are lots of trades that are out of the ordinary. It's clear as day when you are watching trades every day. It's difficult to define what they are because it's only relative to those moments and what is relevant at that time. After the trades are made, they all look like x shares @ x$ amount. It's rampant right now, and it doesn't help recover any losses. It's a waste of time filling a report with the SEC because you don't get your money back. Think about it like this, when someone waves 👋 hello and is genuinely happy to see you. Or when someone waves 👋 and is saying go screw! That's what it's looks like while you're seeing it happen. This is like music notes crossed with a language. The trade goes both ways pump and dumps also work with short trades. Manipulation also works on the downside. Right now there is a slew of money managers that didn't put money in the market. They didn't think it would get this far. When it did then we got an onslaught of bearish trades that were on the verge of losing. Then when it started going down it didn't have the momentum for enough downside pressure. Then there was a 911 call saying there was an active shooter in the senate building August 2,2023 that accelerated the sell off. The caller got rewarded.

  • Reply
    @austinmatthew-san4042 June 19, 2024

    So basically these insider trading laws affect only the poor and middle class… as with EVERY law being passed. It doesn't affect the rich.

  • Reply
    @FlightNSurf June 19, 2024

    America is rigged!

  • Reply
    @lapidaryland June 19, 2024

    Not enough to stop them, a little federal time, equals retirement?

  • Reply
    @topsideone1015 June 19, 2024

    That means I can do it too?

  • Reply
    @trentd2152 June 19, 2024

    “Its one big club & you aint in it”

  • Reply
    @x1928 June 19, 2024

    Don't give me this BS when we all know politicians and their spouses are free to do as they want with insider info.

  • Reply
    @m3lightweight June 19, 2024

    You meant the Oracle of California aka Pelosi?

  • Reply
    @RobertJenkins835 June 19, 2024

    I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Maria Reyes.

  • Reply
    @JHartless1488 June 19, 2024

    DRS GME to have the game stop

  • Reply
    @ambition112 June 19, 2024

    0:00: 📈 Insider trading is difficult to prove and prosecute, with no clear definition, and the SEC often focuses on smaller cases rather than big offenders.

    3:43: 💼 Insider trading can be prosecuted through civil or criminal law, with the SEC handling civil litigation and the DOJ handling criminal cases.

    6:41: 🔍 Justin Paperny, a former securities fraud convict, now helps guide those accused of white collar crimes through investigations, sharing his experience and insights.

    8:46: 💰 Insider trading enforcement actions often target defendants who can't afford high-powered representation, but high-profile individuals have also been successfully prosecuted.

    11:45: 📈 The rise of meme stocks and social media influencers has raised concerns about market manipulation and the influence of retail investors.

    Recap by Tammy AI

  • Reply
    @strauss7151 June 19, 2024

    Nancy Pelosi is the biggest insider trader in America.

  • Reply
    @benjamindover4337 June 19, 2024

    They go after little fish because the big fish run the game. And they don't like competition.

  • Reply
    @strechinpick June 19, 2024

    How are you not prosecuting senators and congressman? This needs to happen. Makes me freaking sick!

  • Reply
    @John-tx5or June 19, 2024

    Becuz U Dont Wanna .. Debbie Downerz., Too, U. U Dint evwn Tend .. yur Garden… Split 🪓 Stocks. La La La.

  • Reply
    @BenjaminAchak June 19, 2024

    Hey guys, I know nothing about the market and I'm looking to invest, any help? As well who can I reach out to?

  • Reply
    @Natalieneptune469 June 19, 2024

    Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680k savings vanish after putting in so much effort to accumulate them.

  • Reply
    @kc10man June 19, 2024

    The worst insider traders are members of Congress……

  • Reply
    @chancellorasher9417 June 19, 2024

    You don’t say? 😒

    – Nancy Pelosi

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