The SEC moves against another alleged insider-trading ring


I like what the Securities & Exchange Commission is doing this days. It cracked down on insider trading at Galleon Holdings, the former $3.7 billion hedge fund whose boss, Raj Rajaratnam, is out on $100 million bail. But the SEC hasn't stopped there: Yesterday it announced an indictment against a former chief financial officer of ValueAct Capital.

You may recall that several years ago, ValueAct Capital cleverly bought a huge chunk of Martha Stewart Living Omnimedia (MSO) after Stewart was tossed in jail in 2004 for lying to investigators about her late 2001 sale of stock in biotech company ImClone Systems -- prosecutors suspected she sold based on insider information. ValueAct ended up owning 22 percent of MSO and sold most of its stake in 2005 after the stock rebounded, picking up a nice profit in the process.