Paper Topic:

Do a case analysis of SEC v. Chiarella.

Chiarella v . United States

Holding

Chiarella (a petitioner in the case ) has been employed by a financial printer that used to print financial takeover bids for certain companies . Chiarella consciously deduced the names of the target companies from the information included in the documents that have been provided to the printer by the acquiring companies . He then purchased the stock of the target companies without disclosing his knowledge and immediately sold those assets as soon as the takeover attempts became known to public . The SEC started an investigation and Chiarella entered

br into a consent decree with SEC in which he agreed to return the profits to the sellers of the shares . The decision of the District court that has been supported by the Court of Appeals the petitioner has been convicted for violating 10 (b ) of the Act and SEC Rule 10b-5 (Chiarella v . United States

Arguments for Chiarella : Arguments for SEC

Silence in connection with the purchase or sale of securities is not a fraud in the meaning of 10 (b ) of the Act and SEC Rule 10b-5 , since there is no express legal prescription or judicial practice that would consider nondisclosure as fraud (Strader et al , 2005 . Silence in connection with the purchase or sale of securities does consitute a fraud in the meaning of 10 (b ) of the Act and SEC Rule 10b-5 , and available law and practice indirectly support it (Strader et al 2005

The petitioner was not in charge to disclose the information he possessed...

3 pages

36.5 KB

Free sing-up