A financial adviser who made more than $250,000 trading on insider information he got from a fellow Alcoholics Anonymous member failed in his bid to overturn his conviction by challenging the validity of the rule he violated.
Timothy McGee, who was convicted by a jury in 2012 of securities fraud, had argued to the U.S. Court of Appeals for the Third Circuit that the U.S. Securities and Exchange Commission’s rule triggering liability for use of misappropriated information in trading is invalid since it doesn’t require a fiduciary relationship between the person who used the misappropriated information and the source of that information.
