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Confidentiality Breached: A Teaching Case on Insider Trading

  • University of Missouri at St. Louis

Research output: Contribution to journalArticlepeer-review

Abstract

This case is based on insider trading cases by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) against Martha Patricia (Patty) Bustos and Donald Blakstad. Bustos, a CPA employed as a business analyst for Illumina, Inc., passed confidential, nonpublic information of Illumina’s quarterly financial performance to Blakstad, who traded highly speculative Illumina securities before the company’s quarterly earnings announcement for a profit. In this case study, students explore how fraud theory explains the commission of a financial crime like insider trading. Students also explore the obligations related to keeping information confidential and weigh arguments for and against insider trading to develop ethical reasoning and decision-making skills. Students at accredited midwestern and Southern universities participated in this case assignment. We provide assessment information and implementation suggestions to interested instructors.

Original languageEnglish
Pages (from-to)167-184
Number of pages18
JournalIssues in Accounting Education
Volume41
Issue number1
DOIs
StatePublished - Nov 18 2025

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 16 - Peace, Justice and Strong Institutions
    SDG 16 Peace, Justice and Strong Institutions

Scopus Subject Areas

  • Accounting
  • Education

Keywords

  • confidential information
  • fraud triangle
  • insider trading
  • responsibility of CPAs

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