Issue: Did Steven Cohen engage in insider trading in violation of Rule 10b5-1 by using improper means to gain early access to non-public information, leveraging his influence, and paying high commissions to brokers for privileged information? Rule: Rule 10b5-1, prohibits the use of material, non-public information in securities trading. Insider trading occurs when an individual trades stocks or other securities based on confidential information not available to the general public, thereby gaining an unfair advantage in the market. Key elements of insider trading under Rule 10b5-1: 1. Material information – The information must be significant enough to influence an investor's decision. 2. Non-public – The information must not be widely available to the public. 3. Intent to trade – The individual knowingly uses the information to make trades. Application: Steven Cohen, owner of SAC Capital, used his influence and resources to gain access to material, non-public information by paying high commissions and fostering strong connections with banks and insiders. This gave him an unfair advantage in the market, as his trades were often based on privileged information obtained before it became publicly available. His aggressive tactics and reputation for "getting information first" demonstrate intent to exploit insider knowledge for financial gain, violating Rule 10b5-1. Conclusion: Steven Cohen’s practices clearly violated Rule 10b5-1 by leveraging non-public, material information to trade. His actions demonstrate a deliberate breach of securities laws, undermining market fairness and transparency.