The problem with insider trading is the lax definition of it. If you go to a let's say High School reunion and talk to an old buddy and he's hammered and he says 'oh yeah i work at this drug firm and things are going well, keep it on the dl but this new drug is gonna get approved by the FDA in a couple of months" and you go home and plunk down a chunk of cash on his companies stock - poof - off to jail with you. Horseshit.