During a session with his psychiatrist, Dr. Lilly Looney, Brian Wilson mentioned in confidence the imminent merger of Shearson Loeb Rhoades with American Express Company. Wilson's ex-wife, Sara Wilson, was on the board of directors at Shearson. Looney communicated the information to a securities broker, Olive Green, who immediately made trades in the Shearson and American Express securities for her own account and for her customers' accounts.
Did Looney, Brian Wilson, Sara Wilson, or Green engage in illegal insider trading? Explain the potential culpability of each party. Include possible civil or criminal penalties for each party.
Was the conduct of the parties ethical?
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