The SEC catches maybe 0.01% of insider trading. The inherent difficulty in enforcing insider trading has led many policy makers to push for legalizing the practice.
The more cogent question is, in light of recent revelations, why did they investigate this particular case instead of all the other potential cases?
So they were going to crush his business and he tried to cash out? I don't know the whole story, but it seems that this is one of those cases where the SEC chose to occasionally enforce the law....
Would it be illegal for the companies that complied as they may have known that cooperating with the government would earn them lucrative contracts that their companies could benefit from?
It just doesn't seem right. Everyone else gets retroactive immunity and Nacchio goes to jail.
Also, how was the insider trading brought to light? I'll have to investigate that...
<wait for it>
...Nacchio average CEO!
But seriously, good on him for standing up. I wish more corporate masters^H^H^H^H^H^Hleaders would push back like this more often.