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To: Regulator
For corrections to the rest of your mistaken notions about insider trading, go here.
73 posted on 03/06/2004 10:40:48 PM PST by Bonaparte
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To: Bonaparte
For corrections to the rest of your mistaken notions about insider trading

The mistaken notions appear to be mostly on your part, as you still don't seem to understand the difference between agency rules and criminal codes. Title 18 of the United States Code defines crimes, and so far, in all of the links you have left me, I find only oblique reference to "insider trading" as a crime. Specifically, it appears to be something that is a violation of Rule 10b-5. Note the label "Rule", not "law".

Your securities link even had a laughable comment that the SEC is allowed to "impose criminal sanctions..." - there is no agency of the Executive branch which has the legal ability to impose any criminal sanction. That's what the Judicial Branch is there for.

Even the 1984 Act and the ITSFEA appear to mainly increase civil penalties for 'insider trading'. Where the criminal component comes in is here: Willful violations of the Regulations . Title 15 creates the regulatory structure, and 78ff defines a crime as a willful violation of the regulations that SEC might promulgate. Note that this does what I previously said: it allows an agency rule to have the effect of law, even though it is not in fact a law itself. So you can be administratively charged and fined by the Admin law court of the SEC, and criminally charged for the willfullness of the violation, or other components of a specific set of acts that might violate Fraud or Misrepresentation.

So here's your assignment, Napoleon:

Civil Penalties for Insider Trading under Title 15 - show me the criminal penalty imposed here. There aren't any.

Title 15 - Have at it, Big Guy. This is all of Title 15. Find the criminalizing component for a violation under 78u-1, other than 78ff. Good Luck.

92 posted on 03/07/2004 1:23:00 PM PST by Regulator
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