When a person deals in a security when in possession of non-public information, and they have an obligation not to reveal or use the information it is:

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Insider trading occurs when an individual buys or sells securities based on material, non-public information obtained in the course of their job or professional duties. This is illegal because it gives the trader an unfair advantage over other market participants who are not privy to the same information. Embezzlement, racketeering, money laundering, and money fraud are all different types of financial crimes, but they do not involve trading securities based on insider information.

When a Person Deals in a Security When in Possession