THREE LOCATIONS RAIDED FOR INSIDER TRADING EVIDENCE

This week the FBI raided at least three corporate locations where evidence of insider trading might be located. It was widely circulated amongst news agencies that the locations were addresses for Level Global Investors LP, Diamondback Capital Management LLC and, Loch Capital Management LLC. The FBI has an ongoing investigation therefor, they will not give specifics.

If the companies mentioned above are under investigation then this is important news. The SEC has been investigating and prosecuting several companies for various crimes however, the SEC can only fine criminals but, the FBI can put them in jail.

There arm many on Wall Street that believe that insider trading should be just another money making tool for wealthy individuals and companies. The problem with insider trading can best be illustrated with companies that seem healthy according to all available information but, suddenly the company is shorted over the course of a few trading days into having a nearly worthless stock. Then the bad news known only by a lucky few becomes public and the honest investor has lost and the inside trader walks away with all the money. In short, insider trading is anything but a victimless crime.