NCJ Number
129583
Date Published
1991
Length
29 pages
Annotation
Sentences imposed for insider trading offenses currently vary according to the particular defendant and the crime involved, but new guidelines proposed by the U.S. Sentencing Commission will make sentences more uniform.
Abstract
As of August 31, 1987, 67 people in the United States had been prosecuted for insider trading or for offenses associated with insider trading. Most of these defendants pleaded guilty, and only one was acquitted. Sentencing for insider trading has been almost exclusively within the discretion of the sentencing judge. Federal law typically requires that the offender be fined up to $10,000 or imprisoned up to 5 years, or both. Within these broad limits, the judge can impose any sentence. New guidelines proposed by the U.S. Sentencing Commission will change the way in which sentences are imposed. The new system provides for a series of guidelines that must be used to calculate the sentence, unless there is a compelling reason not to use them. For white collar offenders, the commission contends that the definite prospect of prison will deter many insider trading crimes. The commission's penal objective is to significantly limit probation. The commission also hopes to eliminate disparity in sentencing by imposing the same sentence on identically situated defendants. The way the guidelines will eliminate sentencing disparity is illustrated using the case of a hypothetical insider trading offender. Appendixes contain a list of criminal prosecutions for securities fraud and related offenses in New York and a sentencing table. 40 notes and 2 tables