Totally kosher here.
A years ago, Massachusetts duffer Eric McPhail was engaging in a time-honored country-club tradition: Shooting the shit with his fellows on the links, the shit in this case being material non-public information. Generous guy that he was, McPhail never traded on that information himself, but did alert some buddies who did and made a cool half-mil or so. This is insider trading, according to a Boston jury.
Just a short drive down I-95, however, it may not be insider trading anymore, thanks to Preet Bharara’s worst nightmare. McPhail couldn’t have known this at the time, but if he’d only done his "research" on one of the many fine golf courses of southwestern Connecticut or Westchester, he might well be in the clear.
Prosecutors said McPhail learned secret information about American Superconductor from a senior executive who, like him, belonged to the Oakley Country Club in Watertown, Massachusetts…The trial came after U.S. District Judge Denise Casper rejected a bid to dismiss the case in light of a December ruling by the 2nd U.S. Circuit Court of Appeals in New York that curtailed authorities' ability to pursue insider trading.
While the decision, which reversed the convictions of hedge fund managers Todd Newman and Anthony Chiasson, only applied to judges in New York, Vermont and Connecticut, McPhail, Parigian and defendants in other states began citing it in their cases.