b. Provides that "ignorance of the law is not a defense" to imprisonment for "willfur au y indviduals, but not securities fraud c. Provides for criminal prosecution of insider trading by the SEC d. Provides jail sentences up to 20 years for "willful" violations of Rule 10b-5 8. In United States v. Martoma, the Second Circuit reasoned that- Only an officer, director or employee of a company can be an "insider" subject to insider trading prosecution under Rule 10b-5 A "tippee" must give a financial reward to the insider-tipster to be guilty of a 10b-5 insider trading violation a. b. gift of inside information is the same as trading on the information and gifting the profits for purposes of insider trading prosecution A recipient of material non-public information from a corporate consultant may never trade on that information without violating Rule 10b-5 c. A d. 29. Which of the following is NOT a principal objective of the Securities Exchange Act of 1934? a. To regulate securities exchanges b. To regulate securities broker-dealers c. To regulate secondary trading in securities d. To regulate private equity funds 30. Which of the following corporate events does NOT trigger a requirement to file a Form 8-k wilth the SEC? a. Termination of a merger agreement Agreement on principal merger terms