OTHER NEWS - Oct. 8, 1991

Policing Powers Over Inside Trading Upheld: In a ruling expected to preserve the government’s ability to police insider trading, an appeals court reinstated part of a stockbroker’s conviction for trading on inside information about a 1986 takeover. The 2nd U.S. Circuit Court of Appeals ruled 10-1 that a smaller panel of the same court had wrongly thrown out Robert Chestman’s conviction on 10 counts of fraudulent trading in connection with a stock tender offer. Securities law experts said the partial reversal marked a victory for the government, which had argued that its power to prosecute insider trading was severely hampered by the May, 1990, ruling by a three-member appeals court panel.