[Regulator]

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.

[Bonaparte]

"... the difference between agency rules and criminal codes."

The statutes authorize the agency regs. And those regs are always subject to oversight and review by congressional and executive liaison. Once again, the rules are authorized by the enabling legislation. Or did you think Congress is responsible for implementation and enforcement of its own laws?

"...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."

The following definition is from the Findlaw Legal Dictionary. See definition 1. I have provided links to current examples of federal agencies imposing criminal sanctions, ie. penalties for breaking the law.

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
Example: a {h,1}sanction for contempt

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
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Fax.com Fined Over $5 Million by FCC

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)...

Under the securities laws the Commission can bring enforcement actions either in the federal courts or internally before an administrative law judge. The factors considered by the Commission in deciding how to proceed include: the seriousness of the wrongdoing, the technical nature of the matter, tactical considerations, and the type of sanction or relief to obtain. For example, the Commission [ie. the SEC] may bar someone from the brokerage industry in an administrative proceeding [IOW, somebody broke a law and the SEC imposes a sanction for that crime], but an order barring someone from acting as a corporate officer or director must be obtained in federal court. Often, when the misconduct warrants it, the Commission will bring both proceedings.

...

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.


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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:

...criminal sanctions may include imprisonment, fines, restitution of monies, and rendering of community services.

IOW, fines are grouped along with those other remedies classified as criminal sanctions, and fines, as I've demonstrated above can be enforced by a variety of federal agencies without recourse to the court system, ie. by internal, administrative process -- a process whose recommendations an agency such as the SEC can accept or reverse.

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.