Mike The Pike Productions Inc (MIKP)

[lbdave]

Let's look at it with a more realistic example, because the one you used (burning down your own house) harms no one but the owner.

If some crooks (CEO and insiders) broke into your house and stole your valuables and money, and the police (SEC) knew who the culprit was, is it okay for them to turn a blind eye? They could keep an eye on them for awhile in hopes of recovering your valuables (selling you stock to recover your money) or they could arrest them immediately in which case your valuables are gone forever. The problem with keeping an eye on them for awhile, hoping to recover your property (allowing you to sell your stock) is that there will be many other victims getting burgularized along the way. As the saying goes "sacrifice a few to save the multidudes" applies in capital market manipulation cases. You truly are a victim in these situations, but placing fault for your loses on the enforcement agencies would be like being mad at the bank teller for giving the bank robber your money. The fault lies with CEO and insiders only. END of STORY.