Chicago Insider Trading Case Heard By The Supreme Court

Block & Landsman by Block & Landsman

A man with flying documents, securities fraudOn Oct. 5, the Supreme Court of the United States heard arguments in the case of a Chicago grocery wholesaler who was convicted of insider trading, and their ruling may affect how insider trading cases are handled. The man, Bassam Yacoub Salman made $1.5 million in profits along with a partner based on insider tips. He was convicted at trial and sentenced to prison. The man received tips from his brother-in-law who in turn received tips from his brother. Salman is appealing because he argues that Maher Kara, an investment banker at Citigroup, ...Read More

When Walgreens Misled Shareholders

Block & Landsman by Block & Landsman

Shareholders sitting around a table, securities fraudOn September 30, 2016, a Chicago federal judge ruled that drug store giant, Walgreens, must face charges of misleading investors relating to a spike in generic drug prices back in 2013. The company downplayed the price increase so that investors wouldn't question the weaker profits reported during that period, though they were unusual for the organization. If even large corporations like Walgreens can be accused of securities fraud, it is even more crucial for investors to remain ever-vigilant against this type of misinformation. This type...Read More

Crimes From the Financial Crisis Collect Dust

Block & Landsman by Block & Landsman

Hundreds of dollar bills, securities fraudThe global financial crisis that lasted from 2007-2009 wiped out trillions of dollars in wealth. It was the greatest financial disaster since the Great Depression in the 1930's, yet the majority of cases of securities fraud that occurred during this time have yet to be prosecuted. The Crisis at a Glance Mortgage lenders eager for profits and market share promoted subprime mortgages to clients whose credit and financial situation were questionable. The easy credit offered and underwritten by these institutions left these lenders vulnerable as ...Read More

Supreme Court Weighs In On Insider Trading

Block & Landsman by Block & Landsman

A Handshake, investment fraudOn October 5, 2016, the United States Supreme Court heard arguments in a high-profile case that could change the way insider trading is prosecuted. The case, Salman v. United States, focuses on clarifying what constitutes benefiting from insider trading- a subject that has never really been clearly defined. In 2014, Illinois resident Bassam Y. Salman was sentenced to three years in prison for securities fraud and conspiracy charges that arose when he bought stocks based on tips he received from an extended family member who was an investm...Read More