You Can Take Your Insider Trading Appeals Court Ruling And Shove It: Preet Bharara (Paraphrasing)

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The justification for my position is here somewhere, and I'm going to find it.

He took his time, mulled it over, considered his life choices, worked on his grief, pondered the criticisms and looked the awful, no-easy-insider-trading-convictions future in the face. It is a future the Manhattan USA isn’t ready to accept just yet.

Prosecutors will ask a full panel of the Second U.S. Circuit Court of Appeals to review a decision three of its judges made in December that put new limitations on prosecutors’ ability to pursue insider-trading cases, according to a spokeswoman in the U.S. attorney’s office….

If the request is rejected, or if the court accepts it but doesn't overturn or modify the decision, prosecutors could still appeal to the Supreme Court, a move that would also require sign off from the Justice Department.

The ruination of the life and work of Preet Bharara is, of course, bad news for Preet Bharara. It is also bad news for the Securities and Exchange Commission, which has spent the better part of six years letting Preet’s boys at the U.S. Attorney’s Office do its work for it, and then rushing to a neighboring courtroom to win a quick judgment against the evildoers whose evil, it seems, may no longer rise to the level of criminal. Also understandably, they would prefer that easy route remain open to them.

The court’s analysis creates “additional uncertainty” for SEC enforcement actions, the agency said. “Rehearing is warranted to remove any confusion….”

“The panel’s narrowed definition of personal benefit and lack of clarity about the evidence required for establishing such benefit could negatively affect the SEC’s ability to bring insider trading actions,” the SEC said.

Prosecutors to Appeal Key Insider-Trading Ruling [WSJ]
SEC Joins U.S. Prosecutors Seeking to Reverse Insider Ruling [Bloomberg]

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