The Chiarella v. United States case was the first insider trading prosecution under federal securities laws. The U.S. Supreme Court's ruling in 1980 changed insider trading laws and still influences them today. This essay explores overlooked aspects of the case, revealing how a small SEC settlement led to a groundbreaking prosecution. By analyzing legal records and interviewing key attorneys, it shows that Chiarella's impact was shaped by both legal strategy and the Court's decision.