All it took to persuade Roomy Kahn to rat on Raj Rajaratnam was a text message obtained by the SEC: “[wait] till I get guidance; want to make sure guidance OK.”
Cryptic, sure. Impressive use of semi-colon, definitely.
But hardly a smoking gun.
And all it took to obtain a wiretap for Raj was his comment to Kahn (who voluntarily wiretapped her own phone) that Intel revenue would be up about 10%. When Intel reported revenue up 10.5%, prosecutors struck.
As Felix Salmon notes based on today’s WSJ account, the evidence used by SEC investigators was shoddy and could have been drawn against almost anyone on Wall Street. If those are the standards required to obtain a wiretap, then really everyone is at risk.
Further analysis at Felix Salmon’s blog –>