Inside Trading is a curse of the markets.
It is also very difficult to define and control and for laissez faire capitalists it is not a problem. The regulators and current opinion take a different view and have taken down a hedgie who through his actions has tarnished others.
The man in question has been a scapegoat. Let us hope the institutions who sold the inside information are prosecuted too. Unlikely of course.
Australia: the next big bubble to crash (bloomberg)
Greece descends into anarchy (reuters)
Madoff to share cell with new inmate.