Susan is the Executive Vice President of Awesome Avionics, Inc., a publicly traded company. As EVP, Susan learns that Awesome Avionics is about to release an aircraft piloting system that will revolutionize the airline industry.

Susan is the Executive Vice President of Awesome Avionics, Inc., a publicly traded company. As EVP, Susan learns that Awesome Avionics is about to release an aircraft piloting system that will revolutionize the airline industry. Telling him to keep the secret, Susan tells her next door neighbor Peter about the development and suggests that he buy stock in the company. When the product is announced the price of Awesome Avionics stock increases dramatically and Peter sells his stock. Grateful for the information, Peter buys Susan a Rolex watch.

Sam Shady, CPA, prepared financial statements for Awesome Avionics, Inc. From preparing the documents Shady learned that Awesome Avionics would soon release the revolutionary aircraft piloting system. Expecting the price of Awesome Avionics stock to rise sharply, Shady purchased 1,000 shares of Awesome Avionics stock. Three weeks later, Shady sold his Awesome Avionics stock at a profit.

a. Individually, detail the unlawful activity that Susan, Peter and Shady have engaged in.

b. What consequences do Susan, Peter and Shady face

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