The Perils of Pillow Talk George C. Harris

• Pages: 149-156

149

CHAPTER 8

The Perils of Pillow Talk

George C. Harris

1. Sharing Material Non-public

Information in the Context of Intimate,

Family, orOther Personal Relationships

Although many professionals and corporate insiders may be keenly aware of

the need to avoid sharing material non-public information with competitors,

brokers, and others in their industries, the consequences of sharing such

information within the context of an intimate, family, or other personal

relationship may not be as obvious. But, as the examples discussed in this

chapter show, the consequences can be just as grave when such informa-

tion is shared with a paramour, spouse, parent, friend, or other confidant.

Corporate insiders or anyone else possessing material non-public informa-

tion must understand that once disclosed, that information could be used

to trade, thereby putting all involved at risk of civil or criminal charges of

insider trading.

A. The Perils of Pillow Talk

Throughout the years, many insider trading cases have shared the common

protagonist of a mistress or paramour. Such relationships often lend them-

selves to an insider letting his or her guard down and highlight the dangers

Loewenson56940_Ch008.indd 149 23/03/17 9:45 AM