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Comment by dilyevsky | Hacker News Reader

Your solution is easily sidestepped by trading through an entity that can’t be automatically traced to you. I’m pretty sure it’s more complicated than that and involves some form of anomaly analysis involving high gains on low activity accounts at suss timing

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Entity trading is not going to obfuscate things that much. If you trade as an entity you probably have to provide an obscene amount of information to your trading platform like who are the stakeholders of the entity and who are the traders.

Not saying that SEC doesn't have sophisticated tools but I think in most cases they don't need that. Their power lies in their regulatory ability to collect personal information of who trades, when and how much.

I think the idea is to use an entity that you don't have any sort of formal agreement or paperwork with. Eg. work out a verbal agreement with an old friend that you trust, send them the insider info in an encrypted or analog way, then they send you a cut through some unrelated method. That all seems plausible for a normal motivated person to execute on and very hard to prove.

Congratulations, that's now a conspiracy to commit insider trading.

Well, yeah, that's the point. We're talking about ways insider traders can evade detection.

I think the idea is more like "get my acquaintance Bob to go to his broker and make the trades based on my information, Bob and I split the profits under the table."

The SEC can collect all the information it wants, but people committing securities fraud may not provide accurate information.

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