42.docx - 42 3 David Gain was the chief executive...

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42- 3 David Gain was the chief executive officer (CEO) of Forest Media Corp., which became interested in acquiring RS Communications, Inc., in 2010. To initiate negotiations, Gain met with RS's CEO, Gill Raz. After these meeting David was in constant contact with family members in which they subsequently bout a substantial amount of shares. Forest’s initial bid was refused but another merger with another company too place. The value of the stock rose 30% along with the Mark and Jordan’s holding in the company. The issue at hand is did Gain engage in insider trading? What is required to impose sanctions for this offense? Could a court hold Gain liable? There is likely enough evidence in the facts of this problem to find that David violated the law because there was a clear pattern—every time David called his brother or father, Mark or Jordan bought more RS
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