I think you mean the SEC and/or the "feds" (FBI), not the federal reserve bank? The problem with insider trading is that a verdict hinges on proving intent to

I think you mean the SEC and/or the "feds" (FBI), not the federal reserve bank? The problem with insider trading is that a verdict hinges on proving intent to defraud, which is very difficult to ascertain. Also, IMHO, insider trading is mostly used as an easy way to generate publicity and give the general public the fuzzy feeling that "something is being done", whilst achieving rarely something of value for the markets and society. There are many things much more worth of pursuing with limited resources than insider trading. Alas, that's what you get when you staff an oversight agency like the SEC with lots of lawyers.