A drug company applied for the approval of the Food and Drug Administration $($FDA$)$ to market a miracle drug that the company believed could cure some cancers. During the period that the application was under consideration, the company$$s stock rose to $$65$ per share. The president of the company learned that the FDA application was about to be denied. You are a personal friend of the president, and he told you that he believed that the stock will start trading downward. You sell $4,000$ shares of stock, which you purchased for $$10$ per share. Your decision appears to be a good one because you made a profit of about $$200,000.$ When questioned about the sale by an investigator from the Securities and Exchange Commission, you state that the sale was because of a preexisting arrangement to sell the shares when the price fell below $$60$ per share. Following the announcement that the FDA application was denied, the stock went to $$7$ per share.

Did you commit a crime when you sold the stock?

Did you commit a crime in your answer to the federal agent?

Were you part of an illegal conspiracy? $($The class is Business law and ethics$)$