Charged with a crime: Gov't claims you have a legal duty to keep confidences of roommates.

Rikurzhen

Gold Member
Jul 24, 2014
6,145
1,292
185
Everyone is a criminal. All that needs to be determined is what cockamamie law that government wants to charge you with. Check this out:

Pershing Square had a big short on Herbalife and was finishing up its presentation, when an analyst informed his roommate about the presentation, the roommate informed a friend named Jorgan Peixoto and Peixoto traded half an hour before Pershing's position was announced, cratering the stock. The SEC concluded that the roommate, Filip Szymik, had stolen information from the analyst, and therefore came after Peixoto and the roommate for insider trading. But not the analyst: The theory is not that the analyst violated his duty of confidentiality to Pershing Square, but rather that the roommate violated his duty of confidentiality to the analyst. . .

If you took this case to a real court, a judge might reasonably say: Wait, Szymik owed a duty of confidence to the analyst? And not the analyst to Pershing Square? And Peixoto was supposed to know about that? The SEC's theory is not that Peixoto knew or should have suspected that this information was taken from Pershing Square in breach of a duty of confidentiality, which is a reasonable enough thing to suspect. It's that he should have known that it was taken from a roommate in breach of a duty of roommate confidentiality. He was supposed to know about the code of secrecy that bound the analyst and his roommate, and to know that anything the roommate told him was in breach of that duty.​
 

Forum List

Back
Top