Michael Best attorney Jim Fieweger was quoted in Bloomberg Law’s article, “Congressional Insider Trading Law Doesn’t Apply to Collins’ Case” on August 8, 2018.
“Rep. Chris Collins (R-N.Y.) is the first member of Congress charged with insider trading since the passage of a 2012 law banning lawmakers and their staffs from profiting on the confidential information they hear on the Hill.
Prosecutors who charged Collins with securities fraud Aug. 8, however, didn’t rely on the law known as the STOCK Act since the alleged insider knowledge came from his role as a biotech company’s board member.
Lawmakers had an entirely different scenario in mind when they clamored overwhelmingly to pass the Stop Trading on Congressional Knowledge Act in 2012.
“There was a concern that members of Congress and their staff were able to obtain information that was market-sensitive because of their role on committees,” Jim Fieweger, a former assistant U.S. Attorney in the Northern District of Illinois who prosecuted insider trading cases, told Bloomberg Law.
That type of information didn’t violate traditional insider trading laws, which are aimed at corporate insiders who owe fiduciary duties to their companies, said Fieweger, now a partner in Michael Best & Friedrich LLP’s Chicago office.”
To read the entire Bloomberg Law article, click here.