(https://www.forbes.com/sites/johntamny/2021/12/08/the-tragic-and-needless-destruction-of-raj-rajaratnam-price-giver-extraordinaire/?sh=14b93acb44b8)
I fully understand how Rajaratnam (coincidentally my namesake) feels although my personal circumstances are quite different, albeit once, I too was charged for Insider Trading.....with a view to losing money (and this is bizzare).
Insider trading is almost impossible to define sanely. It's premised on the basis that an act that results in profits gained (usually in the stock market) that is based on superior (aka inside) knowledge, is, illegal. One has to ask if this concept sticks, then how about the term "business"...afterall one party gains because he/she knows more than the other. And this information that one party has, is not necessarily "publicly" available. Otherwise, there would be no "competitive" advantage in conducting "business". There are complex legal arguments in the meaning of each of these words but I won't bore you with them now.
The laws that we have on Insider Trading are so "loose" and textbook driven, the Prosecution is automatically allowed to interpret them to their convenience, of course, selectively. Worse, some judges are totally clueless (most haven't traded in the markets) in the rudiments of securities trading and the power of (mis)information, any novel trading initiative that is unfamiliar to them, is considered unsavoury and the accused frowned upon....and usually convicted. This happens in almost every jurisdiction. Ironically, just like in America, most defence attorneys here, are the very same over-zealous public prosecutors before. What they pursued with vigour (and perhaps vindictiveness) when wearing the prosecutor's hat, now that they understand better (after perhaps punishing innocent victims) and try to make peace with their own conscience for prior "wrongdoings".
I'm not saying that all persons charged with insider trading are innocent. I've followed with interest most of the cases in Malaysia and can opine that many, should not even be called to trial. The lack of clarity in laws and the ambition/greed by prosecutors (as Rajaratnam correctly lamented, if one was a two bit fund manager, they will never even look at him. Only the successful ones are prosecuted) pretty much renders the "legal" pursuit just like when we were in school: when the class monitor was eager to pick on the smart kids to boost his ego, especially when he didn't have much up there but wielded the whistle.
Just contrast this situation with the cub reporter who gets an "inside scoop" ....he's always a star. Or the football coach from the opposite team who has "inside" information on those team(s). Or the victorious army generals who win because of their spies on the "inside". Society says these folks are heroes. But when a fund manager gets an "inside" scoop and makes money for his clients, he's the villain. This is Uneven Justice indeed.
Having done my fair share of defending (a 7 year personal battle....and perhaps a Netflix in the waiting?) maybe I should practice defending those wrongly charged with insider trading.
There seems to be a big opportunity here ? 😜
