October Term 2016 · Docket 15-628
Does gifting insider trading profits violate federal law?
The dispute centers on whether sharing trading profits with a relative constitutes a personal benefit under securities fraud statutes.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Ms. Shapiro argued for narrow statutory construction to avoid vagueness.
Justice Kennedy suggested the tippee acts as an accomplice in this scenario.
Justice Breyer questioned the relevance of standard disclosure forms for relatives.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 23, lines 42-18 — Transcript, file page 23, lines 42-18
- Official Supreme Court Transcript — file page 3, lines 20-50 — Transcript, file page 3, lines 20-50
- Official Supreme Court Transcript — file page 3, lines 52-12 — Transcript, file page 3, lines 52-12
- Official Supreme Court Transcript — file page 3, lines 8-18 — Transcript, file page 3, lines 8-18
- Official Supreme Court Transcript — file page 4, lines 16-22 — Transcript, file page 4, lines 16-22
- Official Supreme Court Transcript — file page 4, lines 38-46 — Transcript, file page 4, lines 38-46
- Official Supreme Court Transcript — file page 5, lines 24-36 — Transcript, file page 5, lines 24-36
- Official Supreme Court Transcript — file page 5, lines 52-26 — Transcript, file page 5, lines 52-26
- Official Supreme Court Transcript — file page 7, lines 22-22 — Transcript, file page 7, lines 22-22
- Official Supreme Court Transcript — file page 7, lines 28-46 — Transcript, file page 7, lines 28-46
- Official Supreme Court Transcript — file page 8, lines 20-20 — Transcript, file page 8, lines 20-20
- Official Supreme Court Transcript — file page 8, lines 28-30 — Transcript, file page 8, lines 28-30
- Official Supreme Court Transcript — file page 8, lines 34-24 — Transcript, file page 8, lines 34-24
- Official Supreme Court Transcript — file page 8, lines 6-16 — Transcript, file page 8, lines 6-16
- Official Supreme Court Transcript — file page 9, lines 38-28 — Transcript, file page 9, lines 38-28
A citizen's guide to the whole case
What this case is about
The case tests the scope of federal securities fraud laws regarding insider trading gifts.
Official sources for this section
- Official Supreme Court Transcript — file page 23, lines 42-18 — Transcript, file page 23, lines 42-18
- Official Supreme Court Transcript — file page 3, lines 20-50 — Transcript, file page 3, lines 20-50
How the case got here
The Supreme Court heard oral argument in this case on October 5, 2016.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 8-18 — Transcript, file page 3, lines 8-18
What each side wants
the side that brought the case seeks a reversal of the conviction.
The government seeks to affirm the conviction.
Official sources for this section
- Official Supreme Court Transcript — file page 23, lines 42-18 — Transcript, file page 23, lines 42-18
- Official Supreme Court Transcript — file page 3, lines 20-50 — Transcript, file page 3, lines 20-50
What each side says
the side that brought the case argues the statute requires a direct personal benefit.
The government argues a gift of profits satisfies the benefit requirement.
Official sources for this section
- Official Supreme Court Transcript — file page 23, lines 42-18 — Transcript, file page 23, lines 42-18
- Official Supreme Court Transcript — file page 3, lines 20-50 — Transcript, file page 3, lines 20-50
What the justices asked
Justice Kagan asked about specific language in prior precedent.
Justice Ginsburg asked about the difference between trading and gifting proceeds.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 52-12 — Transcript, file page 3, lines 52-12
- Official Supreme Court Transcript — file page 4, lines 16-22 — Transcript, file page 4, lines 16-22
- Official Supreme Court Transcript — file page 4, lines 38-46 — Transcript, file page 4, lines 38-46
- Official Supreme Court Transcript — file page 5, lines 24-36 — Transcript, file page 5, lines 24-36
- Official Supreme Court Transcript — file page 5, lines 52-26 — Transcript, file page 5, lines 52-26
- Official Supreme Court Transcript — file page 7, lines 22-22 — Transcript, file page 7, lines 22-22
- Official Supreme Court Transcript — file page 7, lines 28-46 — Transcript, file page 7, lines 28-46
- Official Supreme Court Transcript — file page 8, lines 20-20 — Transcript, file page 8, lines 20-20
- Official Supreme Court Transcript — file page 8, lines 28-30 — Transcript, file page 8, lines 28-30
- Official Supreme Court Transcript — file page 8, lines 34-24 — Transcript, file page 8, lines 34-24
- Official Supreme Court Transcript — file page 8, lines 6-16 — Transcript, file page 8, lines 6-16
- Official Supreme Court Transcript — file page 9, lines 38-28 — Transcript, file page 9, lines 38-28
Why it matters
The outcome defines the criminal liability for sharing insider trading profits with relatives.
Official sources for this section
- Official Supreme Court Transcript — file page 23, lines 42-18 — Transcript, file page 23, lines 42-18
- Official Supreme Court Transcript — file page 3, lines 20-50 — Transcript, file page 3, lines 20-50
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 52-12 — Transcript, file page 3, lines 52-12
- Official Supreme Court Transcript — file page 3, lines 8-18 — Transcript, file page 3, lines 8-18
- Official Supreme Court Transcript — file page 4, lines 16-22 — Transcript, file page 4, lines 16-22
- Official Supreme Court Transcript — file page 4, lines 38-46 — Transcript, file page 4, lines 38-46
- Official Supreme Court Transcript — file page 5, lines 24-36 — Transcript, file page 5, lines 24-36
- Official Supreme Court Transcript — file page 5, lines 52-26 — Transcript, file page 5, lines 52-26
- Official Supreme Court Transcript — file page 7, lines 22-22 — Transcript, file page 7, lines 22-22
- Official Supreme Court Transcript — file page 7, lines 28-46 — Transcript, file page 7, lines 28-46
- Official Supreme Court Transcript — file page 8, lines 20-20 — Transcript, file page 8, lines 20-20
- Official Supreme Court Transcript — file page 8, lines 28-30 — Transcript, file page 8, lines 28-30
- Official Supreme Court Transcript — file page 8, lines 34-24 — Transcript, file page 8, lines 34-24
- Official Supreme Court Transcript — file page 8, lines 6-16 — Transcript, file page 8, lines 6-16
- Official Supreme Court Transcript — file page 9, lines 38-28 — Transcript, file page 9, lines 38-28
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 23, lines 42-18 — Transcript, file page 23, lines 42-18
- Official Supreme Court Transcript — file page 3, lines 20-50 — Transcript, file page 3, lines 20-50
- Official Supreme Court Transcript — file page 23, lines 42-18 — Transcript, file page 23, lines 42-18
- Official Supreme Court Transcript — file page 3, lines 20-50 — Transcript, file page 3, lines 20-50
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.