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The violation charged against Mr. Einhorn and Greenlight was "market abuse" under § 118 of the Financial Services and Markets Act of 2000, which makes it a violation for an insider to buy or sell shares "on the basis of inside information relating to the investment in question".
The commission then began investigating whether Mr. Bush had sold on the basis of inside information.
In both cases, it appeared to Bharara and his colleagues that Cohen had made money trading stocks on the basis of inside information that Steinberg and Martoma provided.
"He did not trade a single share nor make a penny on the basis of inside information, and was not aware that anyone had done so".
But that would require a commonly agreed pricing mechanism and confidence that power producers were not trading on the basis of inside information.
To establish a violation, it must show that Mr. Badin bought the securities "on the basis of" inside information, which means proving he had a source with access to confidential information about the deal.
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The complaint includes a hint that there were additional sources of inside information that could be the basis of new charges.
But he denied taking advantage of inside information.
Because investors are kept in the dark, the value of inside information is artificially inflated.
Halperin was born into the Washington establishment, and learned firsthand the power of inside information.
It probably would decriminalize the actions of ImClone's Sam Waksal and other users of inside information.
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