I had a mutual friend with the trader who gained inside information on the pharmaceutical stock that he then relayed to Martha Stuart. This trader(who I will not name, but can easily be found with a little googling) left his analyst position at SAC when the situation got messy then joined Front Point Partners as a portfolio manager. From what I understand, he was in the 8-figure range.
FrontPoint was then itself brought down by an insider trading case relating to the top level mgmt. I dont think the trader even received a subpoena. The sad reality is that there is probably no risk in cheating if you're not a high-profile manager. My assumption is that these guys can produce "research" after receiving a subpoena that muddies the water just enough for their lawyer to bail them out.
It seems to have a similarity to other cases of justifying behaviour based on secret information post hoc; i.e. post hoc "constructive evidence" or "constructive cause" to perform searches or road stops, based circuitively from NSA and/or CIA information which can't/won't be revealed to a court.
FrontPoint was then itself brought down by an insider trading case relating to the top level mgmt. I dont think the trader even received a subpoena. The sad reality is that there is probably no risk in cheating if you're not a high-profile manager. My assumption is that these guys can produce "research" after receiving a subpoena that muddies the water just enough for their lawyer to bail them out.