SAC Capital getting busted for cheating

When I was working in the hedge fund industry, most people understood that SAC did not get it's "ALPHA" from being smarter than the rest of the crowd, but rather by straight up cheating.

Why does this matter? I knew about this stuff back in 2001, and only now is anything finally being done about it.

It makes me think that nothing will ever be done about the pervasive cheating in the world of penny stocks, principally via naked short selling. Yes, Treaty and many other penny plays fumble the ball plenty of times, but when firms like NITE, VNDM, CSTI are there to blast the tape at any given opportunity, it exaggerates the problems to the benefit of the cheaters.

Fortunately for us, the firm is developing an oil field in Tuscola that will put the bears on the run as we get more wells online.

http://www.washingtonpost.com/business/econom...story.html