> at what point does it suddenly become OK to chase after a financial security law violation? The reality is that there is a point at which it is no longer OK

> at what point does it suddenly become OK to chase after a financial security law violation? The reality is that there is a point at which it is no longer OK to chase after a securities law violation. This is why the SEC doesn't go after PE firms that aggressively use carried interest (e.g. a partner puts his salary into the fund and later _only_ pays long term capital gains on his redemptions). There's _too_ much at stake in those cases so the SEC backs off.