Karel Svoboda, a credit officer for Rogue Bank, evaluated and approved his employer’s extensions of credit to clients. These responsibilities gave Svoboda access to nonpublic information about the clients’ earnings, performance, acquisitions, and business plans from confidential memos, e- mail, and other sources. Svoboda devised a scheme with Alena Robles, an independent accountant, to use this information to trade securities. Pursuant to their scheme, Robles traded in the securities of more than twenty different companies and profited by more than $ 2 million. Svoboda also executed trades for his own profit of more than $ 800,000, despite their agreement that Robles would do all of the trading. Aware that their scheme violated Rogue Bank’s policy, they attempted to conduct their trades to avoid suspicion. When the bank questioned Svoboda about his actions, he lied, refused to cooperate, and was fired.
(a) The first group will determine whether Svoboda or Robles committed any crimes.
(b) The second group will decide whether Svoboda or Robles is subject to civil liability. If so, who could file a suit and on what ground? What are the possible sanctions?
(c) A third group will identify any defenses that Svoboda or Robles could raise and determine their likelihood of success.