The 2nd U.S. Circuit Court of Appeals reversed this week the convictions of four defendants for insider trading involving information from the U.S. Centers for Medicare and Medicaid Services (CMS).
The split 2-1 vote decided that the four had not committed a crime because the information, under a recent Supreme Court precedent in the New Jersey “Bridgegate” case, was not property and thus the men did not commit the federal crime of fraud.
According to authorities, Christopher Worall, a CMS employee at the time, provided information regarding changes to reimbursement rules affecting publicly traded healthcare companies to David Blaszczak, a former colleague at CMS who then was working as a political consultant.