Trading on FBI info could be something else also. Fair issue is whether you can be found guilty if the FBI info was publicly available somewhere else. Except here is an issue, and even Royer's counsel conceded that if FBI handed out info all over as Royer did then there would be "chaos": should one group of traders have FBI access to get high-quality, reliable info with just a short call, rather than through the time lag it takes to get it through other sources, while others don't have this advantage? Also, if true calling up the CEO's and talking of FBI investigations would imo instill fear in any CEO and make them feel as if FBI and the shorts were working together almost as one, which is alleged as to Royer and Cleveland.
AP might have reported the activities to his parole officer. How about reporting it though to his members and for example everyone on SI that he was bailing on his short and getting shares direct rather than like everyone else being forced to cover in the market and subject to thin volume conditions via NASDAQ-OTC-BB? No one in the public had access to what AP said to his parole officer, so that seems like a weak defense, does not amount to disclosure. Also, AP's parole officer wouldn't necessarily be able to sign off on whether or not AP was engaged in securities fraud or RICO; after all, no one's alleging that AP's parole officer was on the staff of SEC Enforcement.
Surely not all AP members are liable or even guilty of doing anything wrong, but something should be pointed out here so all members know: under the federal RICO statutes, ALL proceeds from RICO activity is subject to what's called "disgorgement." In plain English, that means that even if an AP member did nothing wrong, if you were a member of the AP site and made profits that can be proved to be a result of AP RICO violations, again, even if you did nothing wrong, then those profits can be seized. The point of that statute being that no profits from criminal conduct should be kept by anyone, in order to deter RICO violations and any contributions knowing or not to the pattern.
I think the above is why Ken Breen spoke of the membership and possible further action. I would not be surprised, if this trial results in a guilty verdict on the RICO counts, that asset seizures may be that further action. So, there may be quite a large group of people who have quite a bit riding on what the jury decides. |
