Shapiro, Arato & Isserles Wins Second Circuit Ruling Granting Bail Pending Appeal in Insider Trading Case

On June 18, 2013, the United States Court of Appeals for the Second Circuit granted the motion of our client, Anthony Chiasson, for release on bail pending the appeal of his criminal conviction for insider trading. In Dirks v. SEC, 463 U.S. 646 (1983), the United States Supreme Court held that a tippee does not commit insider trading by trading on confidential information unless a corporate insider had disclosed that information for a personal benefit. Among other issues, Mr. Chiasson’s appeal raises the important question whether a remote tippee can be held criminally liable if he did not know of the insider’s personal benefit–an issue that has divided the district courts.

Alexandra A.E. Shapiro and Daniel J. O’Neill authored the briefs, together with co-counsel Mark F. Pomerantz and Gregory Morvillo.

Copies of the briefs can be found here and here.