SIE: 9.1.2.1. Insider Trading Penalties

9.1.2.1.  Insider Trading Penalties

Insider trading is subject to a maximum civil penalty of treble damages (three times the amount of the benefit obtained by the violation). A civil penalty is a fine or surcharge assessed for the violation of a statute or regulation. “Benefit obtained” means any gain the trader received or any loss the trader may have avoided. When an employee engages in insider trading, the maximum civil penalty that can be imposed on a firm is the greater of $1 million or three times the amount of the profit gained or loss avoided as a result of the violation.

For more serious instances, the government may file criminal charges, with maximum penalties of $5 million for each willful violatio