Corey is an officer, director and shareholder of "high energy fuel" Inc. (HEFI) whose shares are publicly traded on one of the exchanges. Corey knows that a HEFI engineer recently developed a new, inexpensive method for converting hydrogen into fuel. The information about this engineering discovery has not been made public. Corey takes advantage of this information to but HEFI stock from Bert and, after the discovery is announced, plans to sell the stock to Holly at a profit. Bert claims that this is a violation of federal law. 1) Is Bert correct? 2) If so, what federal law has Corey violated? 3) What did Corey do that was impermissible for a person in his position?