The employment contract you signed had a confidentiality clause prohibiting you from sharing the company’s secrets. This includes any non-public information, such as a detail that can be used in trading the company’s stock (insider trading). However, a mistake or misunderstanding can lead to an insider trading allegation.
If this is your case, here is what you should do:
Take the case seriously
Even if you know the charge is due to a mistake, you should take your case seriously. Insider trading can lead to lengthy jail terms and hefty fines. Thus, when you learn of the accusation, start gathering evidence that can help you. For instance, you should look for prearranged trading plans for trade securities or documents that prove the information was already in the public.
Understand the laws
Insider trading may seem straightforward, but the laws surrounding it are complicated. You need to understand them to make the right moves.
Avoid contacting the involved parties
When facing an insider trading charge, avoid meeting any party involved in the case or contacting them. Of course, you may want to get more information from them. For example, if they knew of the information from someone else besides you, and so on. But this may work to your disadvantage.
Don’t go to work
If your employer asks you to go home for investigations to begin, you should do so. You should avoid going back to work, being around the office location or contacting colleagues. Let the company conduct a smooth investigation while you get the right knowledge and experience to determine the best defenses.
Insider trading charges can be complicated. It will help to get legal guidance to protect your career and evade imprisonment and fines.