The Globe and Mail reports in its Thursday edition one of the more fun legal stories making the rounds is about the alleged insider trading at Capital One Financial. Globe columnist Adrian Myers writes it was probably not so fun for Bonan Huang and Nan Huang, who landed in hot water with the Securities and Exchange Commission. The allegations state these Capital One employees would use their spare time to search Capital One's databases to see how many people were using their credit cards at various businesses. If they discovered that lots of people were using the Capital One cards at a particular business, they would buy options in that company's shares; if they discovered that purchases were declining, they would short sell the shares. The allegations concern insider trading in Chipotle Mexican Grill, but did not involve a hot tip from an insider. Instead, the SEC is relying on what is known as the misappropriation theory of insider information, which requires that the trades took place in breach of a duty owed to the source of the information. In this case, the defendants owed a duty of trust and confidence to Capital One not to use Capital One's information about credit cards for their own account.