Insider trading - How to best crack it?

Quoting WSJ : The agency describes the investigation, which started in late 2007, as its biggest ever against insider trading. The FSA is investigating the case in conjunction with the U.K.'s Serious Organised Crime Agency. http://online.wsj.com/article/SB10001424052748703312504575141603859241446.html?mod=djemalertNEWS Argument: There have been similar stories with SEC where they track fund managers for few years before they pull the trigger. I understand that collecting evidence to prove the defendant guilty takes time, however do you think it is in best interest letting the markets function for FEW YEARS knowing that there is a good probability the defendant may be guilty? You cannot roll back counter party losses incurred in those few years. So is this a good system we have in place? Comments…

I’m looking to intern in this capacity. 3 things lead to an examination. 1. Tip 2. Random 3. Trigger event (too good to be true type of suff). An examination at face value is not a big deal. Someone will check records, compliance, internal controls, conflicts of interest, etc. If all is well, a commentary will be issued with things to keep in mind, things to improve, etc. And that’s it. Only if an examiner finds something, does a storm audit take place resulting in fines/imprisonment/etc. I’m not familiar with the timeline, so that is a good point. Remember that there are 11 SEC offices in the country, while there are thousands of investment firms. Registered Rep to Regulator ratio is pretty high.

Yeah, once they get evidence there’s apparently a lot of prisoner’s tactics involved based on what I read in Den of Theives (I think that was it) about Michael Milken.