SAVE MARTHA STEWART? OBSERVATIONS ABOUT EQUAL JUSTICE IN U.S. INSIDER TRADING REGULATION

Heminway examines the structure of insider trading regulation in the US and identifies potential structural sources of selective enforcement and certain easily recognizable bases for enforcement bias in the application of that regulation using the Martha Stewart insider trading investigation. Heminway further recommends more rigorous investigation into possible sources of selectivity and bases for bias in the enforcement of alleged insider trading violations and offers preliminary ways in which the identified potential bias may be obviated or overcome in a manner that is consistent with the current federal regulatory and political environment.