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As someone who has close knowledge of these laws, I can tell you that the defense doesn't even deserve a hearing, but we do live in America. The information Sokol had on Lubrizol was perfect. That wasn't investing. That seems to be just stealing from Berkshire, as his buy most likely moved up the price the shareholders had to pay. The defense here? Simply this: "Warren knows more than you, Mr. Prosecutor, so go away." And Rajaratnam? Goldman is one of many situations in which he had the whole picture right from the horse's mouth. I don't even know if it is worth defending. Better to throw yourself on the mercy of the court; otherwise, you are betting that the jury of your peers is a bunch of morons. Hmm, maybe, in the end, that's exactly what he's betting on. You never know, but note this: Any lawyer would have told Rajaratnam that if he had heard what Rajaratnam was getting that he had to freeze himself or he would be guilty as sin if he bought stock on the information he had. That doesn't mean he will get off, but it does mean that he shouldn't.