Case: Salman v. United States

Facts:Maher and Michael Kara were brothers. As an investment banker, Maher learned about companies that were secretly developing innovative medical treatments. When their father became ill, Maher shared information about these companies with his brother. Eventually Maher realized that Michael was trading on this secret information. Although Maher disapproved of Michael's trades and implored him to stop, Maher continued to give his brother tips.

When Maher started dating &and ultimately married) Bassam Salman's sister, Michael and Salman became friends. Without telling Maher, Michael began sharing Maher's tips with Salman, who made over $1.5 million in profits. Salman knew the information was coming from Maher.

All three men were charged with insider trading. Michael and Maher pleaded guilty and testified against Salman at his trial., (Talk about awkward family dynamics.) Salman was convicted of insider trading and sentenced to 36 months in prison. He appealed, arguing that he was not guilty of insider trading because the tipper (Maher) had not received a benefit. The Supreme Court grantedcertiorari.

QUESTION/Issue:Did the tipper receive a benefit? Did Salman engage in illegal insider trading?