Tipper Is Liable for All Insider Trading Gains.

On February 18th, a divided three-judge panel of the Second Circuit held that an insider trading tipper can be required to disgorge all the improper gains obtained by the tippees. After Joseph Contorinis, managing director at Jeffries & Company, was convicted of having engaged in insider trading for the benefit of the fund he co-managed, the district court granted the SEC's motion for summary judgment in the parallel civil suit. The order also required Contorinis to disgorge all profits made from the illegal trading, including that amassed by the fund. SEC v. Contorinis.