<Li> Gain--How much did the insider make from the transaction, whether directly or as a tipster? Where there is a tipster and a tippee, how much did the tippee make from the transaction? </Li> <Li> Evidence--Anyone charged is innocent until proven guilty . The burden of proof falls on the prosecution . If no one "flips," or if there is no smoking gun, the prosecution has a harder time proving guilt . This may result in prosecution moving away from criminal charges, and instead choosing to pursue civil charges . </Li> <P> In the United States in addition to civil penalties, the trader may also be subject to criminal prosecution for fraud or where SEC regulations have been broken, the U.S. Department of Justice (DOJ) may be called to conduct an independent parallel investigation . If the DOJ finds criminal wrongdoing, the Department may file criminal charges . </P> <P> Since insiders are required to report their trades, others often track these traders, and there is a school of investing which follows the lead of insiders . Following such leads subjects the follower to the risk that an insider is making a buy specifically to increase investor confidence, or is making a sale for reasons unrelated to the health of the company (such as a desire to diversify or pay a personal expense). </P>

When does private corporate information turn into illegal insider trading