Jury Convicts Milken Protégé Terren Peizer of Insider Trading

WASHINGTON—Executives have enjoyed a safe harbor for 25 years to protect against insider-trading charges by committing to sell slices of their portfolio in the future, regardless of market events.

However, a Los Angeles jury convicted a former healthcare company chairman of insider trading despite his use of a prearranged, executive trading plan. The strategy helps company insiders demonstrate they aren’t trading on undisclosed information.