Depending on the nature of an entity’s business, there can be significant collateral consequences to an insider trading conviction or civil resolution, including:

  • significant reputational harm, leading to diminished capital and investor redemptions, and employee turnover;
  • highly qualified individuals potentially being deterred from serving as an officer or director of a public company implicated in insider trading;
  • loss of professional licenses, suspension from associating with any broker, dealer, investment adviser, etc., and bars from serving as a director or officer of a publicly traded company; and
  • triggered contractual obligations with investors or partners that could adversely impact operations. 
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