Andy Works for a Bank in Mergers and Acquisitions

Andy works for a bank in mergers and acquisitions. Andy knows that Airfax Inc. will be taken over in a few weeks and he tells his friend Dan that if he buys shares in Airfax right now he will make lots of money when the takeover is announced. That day Dan then purchased $100,000 worth of Airfax shares. Two months later when the takeover bid was announced, Dan sold his Airfax shares for $180,000, a profit of $80,000. As a result which of the following statements is FALSE?

A) Dan is guilty of insider trading
B) Andy is guilty of tipping
C) Andy is guilty of insider trading
D) both Dan and Andy could potentially face significant fines
E) both Dan and Andy could potentially face jail time of up to 10 years