Yes, hedge fund manager Raj Rajaratnam was found guilty all 14 charges of which he was accused, primarily insider trading and conspiracy, and there is a lot of talk about how this presages a new era of enforcement.

It isn’t, for a couple of reasons.

First, notwithstanding his wealth and power, Rajaratnam was still very much an outsider in the rather lily white halls of high finance.  Simply put:  He was never a member of the club, he was just a guest, and so it was an easy shot for prosecutors to get.

Second, is the likelihood that this investigation, and his wiretap, likely had something to do with his extensive ties, and extensive philanthropy toward, his native Tamil community in Sri Lanka, which likely investigators to suggest that there were potential material support issues regarding the Tamil Tigers, the now defunct terrorist group.  (A caveat here, I’ve heard nothing but rumblings on this, but if I were dealing with a judge dubious about a wire tap warrant, I’d let “Tamil Tigers” slip out).

It may be the start of something bigger, but I will not believe it until we start seeing big fish with pale complexions being frog marched in handcuffs.