Javier, vice president of labor relations at Phone Corp., tells his good friend Francine to read the business section of the paper and then call him back. Within a half-hour Francine calls Javier and indicates that the paper had published an article reporting the possible merger of Phone Corp. with Media Corp., another large corporation. Javier replies, "Yes, I read that article, too, and I believe the rumors to be true." Francine then immediately makes a series of purchases of Media Corp. stock. Seven days after the conversation between Javier and Francine, Phone Corp. and Media Corp. announce the merger. Did Javier violate federal securities laws? If so, what law and why?