Their actions were wiretapped, so they were traded against it. This is one of objectives of the speculative 911 and subsequent homeland security drama to spy on various actions including, mainly, spying on financial information.
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WIRE TAPPP ... >> In Fraud Case, a Deal That Lost Millions
| 21 Oct 2009 | 11:15 AM ET
Raj Rajaratnam, the authorities say, masterminded one of the biggest insider-trading schemes in a generation.
But if Mr. Rajaratnam was trading on insider information, apparently he was not very good at it.
A close examination of the trades that led to his arrest last week reveals a startling fact: In all, Mr. Rajaratnam lost millions from what prosecutors characterize as illegal trading.
One bad trade, in the shares of the chip maker Advanced Micro Devices , cost his hedge fund, the Galleon Group, $30 million. That loss more than wiped out the profits that prosecutors claim Mr. Rajaratnam and his accomplices reaped with their scheme.
Prosecutors highlighted the winning trades in a case that they say stretched from the secretive world of hedge funds to some of the country’s biggest technology companies. They did not mention the losers.
Profitable or not, insider trading is insider trading. And Mr. Rajaratnam, who maintains he is innocent, might have broken the law even if he lost money on his trades.
http://www.cnbc.com/id/33413204/
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