The SEC sued Deloitte and Deloitte tax partner Arnold McClellan and his wife, Annabel, alleging that they passed confidential information about at least seven acquisitions planned by Deloittes clients to her sister and sisters husband. The SEC alleged Mrs. McClellan illegally made $3 million.The sister and her husband in turn allegedly used the inside information to make more than $20 million. Without admitting guilt, Mrs. McClellan agreed to pay $1 million to settle the SEC lawsuit. She told prosecutors that Mr. McClellan was not aware that she overhead him discussing confidential information. The SEC dropped the charges against him. Mr. Arnold was subsequently fired from his position at Deloitte and Deloitte due to a violation of ethics code, a discreditable act. Hes now an ex-Deloitte Tax partner. But what was Arnolds discreditable act?