How is insider trading prosecuted?

Insider trading is a white-collar crime that is prosecuted in California. It occurs when someone trades securities or other valuable financial instruments using confidential information that they have access to, but is not readily available to other people. The Securities and Exchange Commission (SEC) is the government agency responsible for investigating and prosecuting these cases. Insider trading is a serious crime and can result in severe penalties for those found guilty. In California, penalties for insider trading may include up to three years in prison and/or a fine of up to $250,000 per violation. The SEC also has the ability to seek civil penalties, such as disgorgement of ill-gotten profits, as well as other sanctions or remedies. In order to prosecute an individual for insider trading in California, the SEC must show that the person had access to non-public information (confidential information) which they then used to make trades. Additionally, the SEC must prove that the person knew or should have known that the information was not available to the public. The SEC actively investigates instances of insider trading and takes a strong stand against it. Violators of insider trading can face serious consequences, so it is important to be aware of and compliant with the laws regarding confidential information.

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How is insider trading prosecuted?

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