1. Horatio worked at a major Chicago bank on a team that analyzed leveraged buyout proposals. (In a leveraged buyout ("LBO"), managers or others borrow heavily to purchase the publicly-held shares of a company, using the assets and cash flow of the company as security for the loan.) After the bank terminated his employment six months ago, Horatio kept his corporate identification, which he wears suspended from his neck. He has a magnetic key card for the elevator. He also long ago befriended the Saturday morning security guard who watches over the building lobby and elevators. The guard believes that Horatio still works for the bank. On Saturday mornings, Horatio buys a coffee "to go," passes through the lobby, greeting the security guard, and rides the elevator to the 40th floor, where he rifles the desks of his former co-workers. He identified nine LBO targets. Eight of the transactions went forward. With some uncles, cousins and college friends, Horatio has an "investment club" that has invested heavily in LBO target company shares. The club has made $2.3 million in profits. Horatio receives 30 percent. Horatio is liable for insider trading, but in what capacity?
   1. Insider.
   2. Temporary insider.
   3. Tippee.
   4. Thief (or misappropriator).