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The Justice Department is investigating whether he traded Enron stock last year based on inside information.
Trading based on inside information, such as advance word of a buyout, can be illegal.
People like Mr. Chiasson, whose hedge fund made $54 million by shorting Dell stock based on inside information, will not.
Many recent articles about politicians receiving large, unsecured loans from banks for private use have been based on inside information.
Sometimes, said Mr. Iovine, "they have good background based on inside information about an issue, but the way the articles are written, it's hard to find the facts.
(In a subsequent ruling, Gardephe left little doubt about his own views, concluding that Cohen's trades in July , 2008 "were based on inside information that Martoma had supplied").
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In a statement they issued yesterday, they argue that the "predicate for the entire investigation the accusation that Martha Stewart sold her ImClone shares based on inside information has proven to be false".
Alleged: Pequot based those trades on inside information it had about the deal.
Mr. Gupta did not personally trade in Goldman Sachs or Procter & Gamble shares based on the inside information he received.
However, these people and Dr. Waksal have denied that the trading was based on any inside information supplied by Dr. Waksal.
The S.E.C. said that two other people, which it did not identify, allegedly traded for profits of more than $140,000 based on the inside information, bringing the total illicit profits in the case to nearly $600,000.
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