Business

Insider trading case in jeopardy after landmark decision

Another Securities and Exchange Commission insider-trading case is on the rocks.

Wells Fargo trader Joe Ruggieri, who was charged with insider trading in September, received permission on Wednesday from an SEC judge to have his case dismissed.

The order is a result of a landmark federal appeals court decision last week that overturned the convictions of hedge-fund insider traders Todd Newman and Anthony Chiasson.

Ruggieri and Wells Fargo analyst Gregory Bolan were charged by the SEC with insider trading on Sept. 29.

The SEC charged that Bolan tipped Ruggieri ahead of time about eight research reports he was writing that would affect the stock.

Ruggieri made $117,000 off the knowledge.

But under the new judicial standard, it’s not insider trading unless Ruggieri knew that Bolan, who was his friend, was getting a financial benefit from offering the tips.

Following the Newman decision, Ruggieri’s lawyer Paul Ryan said he asked the SEC administrative law judge handling the case to file a motion for summary judgment because of “the lack of any proper allegation of personal benefit.”

On Wednesday the motion was granted. It is due Jan. 8.