More FBI Agents Going Rogue; Agency Is Out Of Control

The FBI has become, or perhaps always was, a total disaster. A major insider trading case brought by US Attorney Preet Bharara has basically been tossed out of court because an FBI agent was leaking like sieve to reporters about the case. You may remember that golfer Phil Mickelson was implicated but never charged in an insider trading scheme run by gambler William Walters. Mickelson was apparently the recipient of one of Walters' tips in order to help the golfer pay off a gambling debt. Walters is now on trial for insider trading for using illegal tips to profit to the tune of over $40 million. But the judge has instructed the defense to file a motion to dismiss the case because a rogue FBI agent was admittedly "a significant source of confidential information" to reporters for the New York Times and the Wall Street Journal which used that material for articles published in 2014.

It is already notoriously difficult for prosecutors to win insider trading cases under current law and current court rulings. All along the chain, prosecutors must prove that the individuals involved knew the tip was improperly obtained and that the person who passed on the tip must receive something of value for it. What this essentially means is that the only persons perhaps legally liable are the original tipper and tippee. Everyone else who profits downstream can claim ignorance and escape justice. And it make even actions against original insiders more difficult. As hard as these cases are to prosecute, then, it really doesn't help when rogue FBI agents submarine the case. The agent apparently leaked the information to the press because he believed that the case was stalled and hoped that the news media might "rattle the cage" and see what fell out. What fell was the whole case in its entirety.

The FBI seems to have no control over their agents at all these days. Rogue elements in the NY field office were responsible for leaking to the press that Hillary Clinton was going to be indicted, in a blatant attempt to influence the election. The name of this agent is, for now, being withheld for "medical reasons" which seems outrageous in its own right. I think, as citizens, we have aright to know who is sinking prosecutions brought on our behalf. So right now we have no idea whether this agent might also be part of that New York cabal.

For the readers who are golf fans, you might want to read up on Mickelson's unsavory relationships with gamblers and his clear connections to multiple criminal defendants. Somehow he has avoided being charged in any of these cases. I wonder if that has to do with his celebrity and presumed wealth.