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Insider Trading off of a Stock Adviser Newsletter
An IT professional named David Stone was able to access an investment newsletter's stock picks before they were announced to the advisor's paying subscribers. He made ~$3 million from trading these stocks.

While it was certainly wrong for Stone to access the picks without permission, and morally wrong for him to front-run the picks, I am curious as to why this is being prosecuted as securities fraud.

Any securities fraud experts in the room?

If a stock advisor newsletter uses only public information, to make their recommendations, if someone gets hold of those recommendations, isn't the crime that they stole from the newsletter? (And not securities fraud?)

As far as I'm aware, the definition of securities fraud includes 'non-public' information. Here, the non-public information is simply which stock the newsletter chose. Which... how big of a newsletter do you need to have for that to be relevant to move the markets?

www.justice.gov
Idaho I.T. Professional Charged With Misappropriating Pre-Publication Investment Recommendations For Insider Trading Scheme

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