Quimbee logo
DMCA.com Protection Status
From our private database of 16,400+ case briefs...

United States v. Chestman

United States Court of Appeals for the Second Circuit
947 F.2d 551 (1991)


Ira Waldbaum, the controlling shareholder in Waldbaum, Inc., agreed to sell the corporation. Ira told several family members, including his sister, Shirley Witkin, about the pending sale, and told them to keep the information confidential. Shirley told her daughter, Susan Loeb, but told her to keep the information secret. Susan told her husband, Keith Loeb (Loeb), but stressed the need for secrecy. Loeb contacted a broker, Chestman (defendant), and told him that the company was going to be sold at a substantially higher price than its market price. Chestman purchased stock in Waldbaum, Inc. for himself and for Loeb. The U.S. government (plaintiff) brought suit against Chestman, and he was convicted of aiding and abetting Loeb’s misappropriation of nonpublic information in violation of Loeb’s fiduciary duty to the Waldbaum family and to Susan, in violation of Securities and Exchange Commission (SEC) Rule 10b-5 and section 10(b) of the Securities Exchange Act of 1934. The Second Circuit Court of Appeals set aside Chestman’s conviction.

Rule of Law


Holding and Reasoning (Meskill, J.)

Concurrence (Miner, J.)

Dissent (Winter, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 374,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 16,400 briefs, keyed to 223 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial