During a session with her psychiatrist, Dr. Robert Willis, Joan Weill mentioned in confidence the imminent merger of the company headed by her husband, Sanford Weill, with another company. Willis, upon hearing of the merger, communicated the information to Martin Sloate, who traded in the company’s securities for his own account and for his customers’ accounts.

Did Weill, Willis or Sloate engage in illegal insider trading? Was the conduct of the parties ethical? [SEC v. Willis, 777 F. Supp. 1165 (S.D.N.Y. 1991).]