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First insider trading conviction based on misuse of 10b5-1 trading plans issued

Image of the US Department of Justice building sign.
Photo: Samuel Corum/Getty Images

The DOJ described the case as the first it has prosecuted exclusively based on a rule that allows company insiders to create a predetermined plan to sell shares.

The former CEO of a Nevada-based healthcare company has been convicted of insider trading in a landmark case involving the executive’s use of a safe harbor that, in this case, could not shield him from a jury conviction.

A Los Angeles jury found Terren Peizer, who also served as the