14 more charged with insider trading

Federal prosecutors charged 14 hedge fund employees, lawyers and other investors in criminal complaints that seem to be connected to the Galleon case.
(From The New York Times)

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[Ronlap]

"were more typically used in organized crime"

If this isn't organized WHITE COLLAR crime then I don't know what is...

[mbenedict]

Um, no. In law, organized crime is (by definition) a group structured to obtain money PRIMARILY through illegal means.

Even in the Galleon case the amount of money Rajaratnam allegedly made through the insider trading scheme is relatively tiny compared to the company's assets & revenues -- we're talking $20 million on a $4+ billion fund averaging double-digit growth.

It would be difficult to argue that Galleon is primarily structured to obtain money through illegal means. In fact it's more interesting to ask why fund managers like Rajaratnam would even bother with an insider trading scheme. The guy is a billionaire... $20 million isn't going to change anything. Maybe ego is the main reason -- people in his position may feel they can get away with anything.