If people feel the need to do insider trading... may be trading is really a meritocratic thing as the market does not care about your name.
In this case, looks more like to me he is going through a shakedown. Someone seemingly weak at the time is certainly very much determined now for some payback.
Where did he think his employee got the info? There was really only one place to get that kind of info.
I guess we might have a case of where the "boss" will be held responsible for the dirty work done by his minions.
I'm having a problem here sorting some of this out. So a lawyer walks into the SEC and mentions his clients trades are dubious re Cohen. Harry markopolis walks into the SEC and mentions some of Madoff's trades don't add up. Nothing happens. MF global money disappears. Nothing happens. In the last two, people directly lost money. Re Cohen, insider trading just skims money off the top. I'm not saying insider trading is harmless just how are the decisions made on whom to prosecute in relation to harm done?
Simple. If the party you donated to is in power, you don't get prosecuted. If the other party is in power, you have to buy your way out with a "large" fine, one that looks great in the paper even though the amount is a small portion of what you actually made on the insider trading (SAC fine announced two months ago). If you happen to be ultra rich and a political player (Corzine), then just lay low for a few years while everything blows over. The unwashed masses have short term memories. Of course your odds of getting prosecuted decrease if you are a Democrat, because the liberal media will not report on one of their own. The odds decrease exponentially if you are black. And you are untouchable if you are any combination of minority, gay, or female (Maxine Waters could front run 30 buyouts over the next year and NOTHING would happen to her).