Question

In the case United States v. Todd Newman and Anthony Chiasson, the Second Circuit Court of Appeals held that for a ____________ to be ____________, she must have the requisite ____________ to receive a personal benefit in exchange for that information.

a. defendant-tippee; criminally liable; mens rea
b. defendant-tipper; civilly liable; mens rea
c. defendant-tippee; civilly liable; mens rea
d. defendant-tippee; criminally liable; actual authority

Answer 1

In the case United States v. Todd Newman and Anthony Chiasson, the Second Circuit Court of Appeals held that for a defendant-tippee to be criminally liable, she must have the requisite mens rea to receive a personal benefit in exchange for that information.

Step-by-step explanation:

In the case United States v. Todd Newman and Anthony Chiasson, the Second Circuit Court of Appeals held that for a defendant-tippee to be criminally liable, she must have the requisite mens rea to receive a personal benefit in exchange for that information.

In this case, the defendants were found guilty of insider trading because they received non-public information and had knowledge that the information was obtained in violation of a fiduciary duty. The court concluded that the tippee must know that the tipper breached their duty by disclosing the information for personal gain.

Therefore, the correct answer is:

a. defendant-tippee; criminally liable; mens rea