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Salman v. United States
United States Supreme Court
137 S. Ct. 420 (2016)
Maher Kara (Maher) was an investment banker for Citigroup. Maher gave inside information to his brother, Michael Kara (Michael). Maher knew that Michael would trade on the information. Maher loved his brother and testified at trial that he gave Michael the information to help him. In addition to trading on this information himself, Michael gave the information to his friend Bassam Salman (defendant), who also traded on the inside information. At trial, Michael testified that Salman knew the inside information was coming from Maher. Salman made over $1.5 million in profits using the inside information. A jury in the United States District Court for the Northern District of California convicted Salman of securities fraud. The United States Court of Appeals for the Ninth Circuit affirmed. The United States Supreme Court granted certiorari.
Rule of Law
Holding and Reasoning (Alito, J.)
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