When I first read the above scenario I immediately knew the committed crime was inside trading. I guess watching an assortment of documentations pay off. I watched a documentary about Enron Corporation called “Enron: The Smartest Guys in the Room” last year and found the collapse and fall interesting I am happy I can make some connections. Darla would be liable under the insider trading theory. Miller states, holds that an individual who wrongfully obtains (misappropriates) inside information and trades on it for her or his personal gain should be held liable because, in essence, she or he stole information rightfully belonging to another” (p. 511). The SEC Rule 10b-5 section prohibits the use of any manipulative or deceptive mechanism in
