"The government's fast-moving insider-trading case is being built on information from five co-operating witnesses, some of whom received information from investors and companies that haven't been charged in the probe, potentially broadening the case, people familar with the matter said. ... The cooperators have pleaded guilty to charges including conspiracy and insider trading and are cooperating in the hope of getting lighter penalties, investigators say. ... The complaint alleges that Messrs. [Choo-Beng] Lee and [Ali] Far paid some of their sources $2,000 per quarter in exchange for information", Susan Pulliam at the WSJ, 6 November 2009, link: http://online.wsj.com/article/SB125746971902632491.html.
Black, I disagree. It appears the DOJ and SEC are acting to convince Joe Schmoe the Feds are serious about white collar crime. What should a prospective white collar criminal do to ward off the Feds? Have some Vampire Squid (VS) higher-ups take part in your scheme such that it you can't be prosecuted without bringing VS down too. Who says VS is good for nothing? Well Preet Bharara (PB), will you indict me for aiding and abetting say wire fraud, 18 USC 2, 1343? Doesn't the US Attorney's Manual state no VS senior executive should be prosecuted? Or is that in the Manual's "confidential" section?
Aparently PB has nothing important to do that he can waste time on this case. By going after some "high profile" types like the Galleon people, he diverts Joe Schmoe's attention from VS. PB, you are making a mockery of our system.
$2,000 per quarter. Wow. Lloyd Antoinette Blankfein's monthly cigar bill must be 100 times larger. This case shows one problem with DOJ prosecutors. They can't make a case without "co-operating witnesses". Well, PB, which VS can you get to co-operate?