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.
sanction |
['sa[ng]k-shen]
1: a punitive or coercive measure or action that results from failure to comply with a law, rule, or order 2: explicit or official approval 3: an economic or military coercive measure adopted usu. by several nations in concert for forcing a nation violating international law to desist or yield to adjudication
Commerce Fines Sun Microsystems For Violating Technology Export Restrictions College Student Fined By SEC For Stock Price Manipulation Company Fined By US Commerce Department For Exporting Encryption Software From the SEC website (all emphasis mine, my clarifications in blue -- see linked page to verify context)...
... Administrative action: The Commission can seek a variety of sanctions through the administrative proceeding process. Administrative proceedings differ from civil court actions in that they are heard by an administrative law judge (ALJ), who is independent of the Commission. The administrative law judge presides over a hearing and considers the evidence presented by the Division staff, as well as any evidence submitted by the subject of the proceeding. Following the hearing the ALJ issues an initial decision in which he makes findings of fact and reaches legal conclusions. The initial decision also contains a recommended sanction. Both the Division staff and the defendant may appeal all or any portion of the initial decision to the Commission [ie. the SEC]. The Commission may affirm the decision of the ALJ, reverse the decision, or remand it for additional hearings. Administrative sanctions include cease and desist orders, suspension or revocation of broker-dealer and investment advisor registrations, censures, bars from association with the securities industry, and payment of civil monetary penalties, and return of illegal profits. **************************************************************** One last attempt to educate you and then I'm outta here... Here are actions included under "criminal sanctions" (from the website of another federal agency, the NRC:
If you still want to argue with all this (and I'm sure you do), take it up with the federal agency lawyers who wrote it. |