Does a remote tippee need to know that the original tipper received personal benefit in return for revealing inside information?

MultiRegion, United States of America

The following excerpt is from United States v. Whitman, No. 13-491-cr (2nd Cir. 2014):

We have yet to decide whether a remote tippee must know that the original tipper received a personal benefit in return for revealing inside information. Compare United States v. Rajaratnam, 802 F. Supp. 2d 491, 499 (S.D.N.Y. 2011) (holding that a remote tippee must know that original exchange was given in exchange for benefit), with United States v. Newman, No. 12cr121, 2013 WL 1943342 at * 2 (S.D.N.Y. May 7, 2013) (holding that remote tippee need only know that tipper breached a fiduciary duty and not have specific knowledge that tipper received a personal benefit). But that question is not at issue in this case because the district court's instruction favored the defendant.

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