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A comment on Nine Charged in Insider Trading Case Tied to Hackers. Parent comment

Re:Nine Charged in Insider Trading Case Tied to Hackers by dublinben on Tuesday August 11, 2015 @09:06PM (#10045425)
Is this really insider trading, if none of the alleged perpetrators were insiders, nor was there anyone breaching a duty to protect the information. It seems like they'll have a pretty strong defense on this point.
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Re:Nine Charged in Insider Trading Case Tied to Hackers by tptacek on Wednesday August 12, 2015 @12:26AM (#10046011)
"Insider trading" is in this case shorthand; they traded based on information they obtained fraudulently, which is enough for a 17(a)/10b-5 case.
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Re:Nine Charged in Insider Trading Case Tied to Hackers by kosievdmerwe on Tuesday August 11, 2015 @10:16PM (#10045631)
It's insider trading if you trade based on non-public information. So if you tell your family that your company is going to do something that will influence the stock price and they trade using that information (no matter how vague that information was) they are guilty of insider trading.
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Re:Nine Charged in Insider Trading Case Tied to Hackers by RockyMcNuts on Tuesday August 11, 2015 @09:58PM (#10045584)
Well, I'm not a lawyer but sounds kind of illegal to hack companies to acquire non-public material information and profit from it.

If it's legal, sounds like a promising startup for YC, smart hackers changing the world, they should apply to the next cycle!

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Re:Nine Charged in Insider Trading Case Tied to Hackers by andrewchambers on Tuesday August 11, 2015 @11:00PM (#10045779)
Of course the hacks are illegal, he was asking whether using the data should be classified as insider trading.
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Re:Nine Charged in Insider Trading Case Tied to Hackers by RockyMcNuts on Wednesday August 12, 2015 @12:50PM (#10048887)
'Of course hacks are illegal', but paying someone to hack and profit from the inside information is OK?

http://www.bloomberg.com/news/articles/2015-08-11/hackers-10...

'Insider trading' is trading on material nonpublic information that was inappropriately acquired from an 'insider'.

There are situations that are gray areas but this does not appear to be one of them.

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