Today, I was reading a complaint filed by the SEC and it raised some questions in my mind.

How can we ever be certain that this type of situation did not occur within the walls of Roswell Capital Partners' offices.

http://sec.gov/litigation/complaints/2011/comp21990.pdf

The case involves unlawful insider trading by an attorney who is a resident of Carlsbad

His daugther visited in 2008. At the time, she was a corp associate in the LA office of a large International law firm, who was working on an impending merger and acquisition involving her firm's client and another company. She performed deal related work in various locations in defendant's home.

In breach of his duty of trust and confidentiality to his daughter, he misappropriated from her material, non public information regarding the impending merger.

On the day the deal was to be announced defendant bought 900 shares EYE, the company daughter's firm was advising. Four days later the deal was announced, the defendant sold all of his stock and made a profit of $11,000+