Michael Steinberg was sentenced to 3.5 years in prison for insider trading on Friday emerging from the destruction of the hedge fund SAC. This is WHY the firm was prosecuted because it was not NYC based. Secondly, this helps the SEC and DOJ pretend they prosecute Wall Street when they do not.
Insider Trading is the biggest nonsense of all. It is ONLY a crime in equities – not futures, currencies, or bonds. If it were, you might as well put a fence around Manhattan and call it a day.
Law is NEVER made by the people actually in Congress. It is the product of prosecutors and judges. Congress NEVER passed a law that said Americans must pay taxes on worldwide income even if they have never lived in America but had one American parent. You can thank judges for that. They reasoned that Congress did not expressly say only the territory of the USA like everyone else, so it should apply to everything earned everywhere. The problem here with this legal interpretation is that this reasoning transforms Americans into economic slaves.
The Revolution was against Monarchy. If you were English and killed someone in Paris, the French could not prosecute you. They had to send you in chains back to your king who owned you. The American Revolution was against Monarchy and thus was born TERRITORIAL Jurisdiction. The law became you were prosecuted where the crime took place – not based upon who owned you. Therefore, the judicial reasoning for worldwide taxation is UNCONSTITUTIONAL for it defies territorial jurisdiction that is recognized by every other nation in tax law except the USA and Japan. Try to resign your citizenship. They want you to pay taxes on future income for the next 10 years. This proves they view you as property to produce taxes – it is not about paying “your fair share” because you received something. You owe them the day you are born and you are NOT free to just leave. If someone beat a slave to death, he had to pay the owner of that slave for the loss of his property. Nothing has changed.
Insider Trading emerged from the Great Depression. Directors withheld news that the company was broke to sell their stock first and then made the announcement. It was Rudy Giuliani who flipped the definition in order to prosecute Michael Milken. He claimed that merely having inside info allowed you to make a profit and the FRAUD was that others were denied the same opportunity to make money. This is a classic communist theory and it is inconsistent with a free market for to apply this theory EXCLUSIVELY to equities is a denial of EQUAL PROTECTION of the law and a denial of one’s civil rights. This is tantamount to saying it is a crime to jaywalk only if you wear a suit.
Insider Trading, as Giuliani redefined it to further his career, is fundamentally flawed. NO serious trader relies upon a single fact or piece of information. Prosecutors, who never understand trading, presume if someone called you and said GM was going to introduce a car that flew and you bought stock after looking at the charts, etc, they isolate only that piece of information. In a bear market, even good news is ignored. Professionals know that reality. I have NEVER seen any professional fund manager EVER rely upon a single piece of info. The only such thing is a guaranteed takeover bid. Other than that, this theory is bogus. It should be relegated to what it originally meant when it was FRAUD only because the directors withheld that news until they sold their shares first. That can never happen these days.
We do not need the Illumiati or Bilderbergs, we have unelected bureaucrats who make their own laws and alter society for something a lot more concrete than world domination – personal career enrichment. Outlawing the Bilderbergs and Illuminati will not save our future. We need REAL political reform – end the career politicians and regulate the bureaucrats and eliminate judges and prosecutors who do not strictly follow the law enacted by the people – that is a real democratic reform.
