U.S. Supreme Court rules for prosecutors in insider trading case

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The U.S. Supreme Court on Tuesday made it easier to prosecute insider trading cases, ruling that tipsters who provide confidential information that enables friends and family to profit do not need to get something in return to have broken the law.

In the court’s first insider trading ruling in two decades, the justices by an 8-0 vote upheld the 2013 conviction of Bassam Salman, a Chicago man who made nearly $1.2 million trading on information that came from his brother-in-law at Citigroup Inc (C.N).

Justice Samuel Alito, writing for the court, rejected Salman’s view that he could be convicted only if his brother-in-law got something like cash in return for tips, saying friends or family could be found liable because the confidential information can be viewed as a “gift.”

“In such situations, the tipper benefits personally because giving a gift of trading information is the same…

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