Insider Trading. David Gain is the chief executive officer(CEO) of Forest Media Corp., which is interested in acquiringRS Communications, Inc. To initiate negotiations, Gain meetswith RS's CEO, Gill Raz, on Friday, July 12. Two days later, Gainphones his brother, Mark, who buys 3,800 shares of RS stock onthe following Monday. Mark discusses the deal with their father,Jordan, who buys 20,000 RS shares on Thursday. On July 25, theday before the RS bid is due, Gain phones his parents' home,and Mark buys another 3,200 RS shares. Over the next fewdays, Gain periodically phones Mark and Jordan, both of whomcontinued to buy RS shares. On August 5, RS refuses Forest'sbid and announces that it is merging with another company.The price of RS stock rises 30 percent, increasing the value ofMark's and Jordan's shares by nearly $660,000 and $400,000,respectively. Is Gain guilty of insider trading? What is requiredto impose sanctions for this offense? Could a court hold Gainliable? Why or why not