Where's the Outrage Over Growing Agressive Government Police State Conduct?

I have already detailed the problems with insider trading charges, here.

Now comes word that a bundle more insider trading cases may be coming down as a result of a cooperating witness who made more than 60 phone calls, at the encouragement of the government, that were recorded. WSJ reports:

A key cooperating witness working for the U.S. in a major insider-trading investigation made more than 60 calls with corporate managers, seeking to gather evidence for the government, a person familiar with the probe says.

The activity by the witness—who was identified by prosecutors in a complaint unveiled Thursday only as "CW-2"—suggests that the insider-trading investigation could grow significantly from the initial charges.

WSJ then identifies Karl Motely as "CW-2" and provides examples of how these calls went down:

In May 2009, the government says "CW-2"—identified by the person familiar with the matter as Mr. Motey—"sought out…consulting services" as a Primary Global client, according to the complaint filed Thursday. The call from Mr. Motey was unusual among Primary Global clients, a person close the situation says: Most clients came to Primary Global through referral.

According to the complaint, CW-2 reached out to Primary Global sales employee James Fleishman and asked him to explain the company's services. "The service we provide is, you know, whatever you're looking for, whether it is short-term or long-term, we'll have people," Mr. Fleishman said on the call, according to the complaint.

Mr. Fleishman was arrested Thursday on charges of wire fraud and conspiracy to provide nonpublic information to Primary Global clients. He was released on bail after a magistrate judge in San Jose, Calif., approved a $700,000 bond agreement with prosecutors.

Mr. Motey's first call was with Marvell Technology Group Ltd. manager Menucher Menuchehry, a person close to the situation says. Mr. Menuchehry hasn't been charged in the case.

Mr. Menuchehry believes his call with Mr. Motey was recorded, another person says.

Mr. Menuchehry was questioned by FBI agents in August about his work for Primary Global, a person close to the situation says. A lawyer for Mr. Menuchehry declined to comment.

In the following months, Mr. Motey made more than 60 calls with other Primary Global consultants, a person close to the situation says. Some other consultants for Primary Global also believe their conversations with Mr. Motey were recorded, another person close to the situation says.

On June 8, Mr. Motey, identified by the person familiar with the matter as CW-2, spoke with Mr. Fleishman about Marvell and said that Marvell claimed to have "design wins" at both Western Digital Corp. and Seagate Technology, according to Thursday's complaint, but Mr. Motey added that he "did not know if this was true."

A Marvell spokesman didn't immediately return calls for comment. A Western Digital spokesman has said the company is cooperating with the government. A Seagate spokesman has declined to comment.

On June 11, Mr. Motey, identified by the person as CW-2, made a call arranged by Mr. Fleishman, with Daniel DeVore, a global supply manager at Dell Corp., according to the complaint. During the call, Mr. De Vore revealed to CW-2 details about Dell's business, including sales forecasts for Dell's desktop business, market share for its hard-drive suppliers and shipment information for its first quarter of 2009, the complaint said.

After the call, CW-2 spoke to Mr. Fleishman about the call with Mr. DeVore. According to the complaint, "He gave me some great information on Dell," CW-2 said. Mr. Fleishman replied: "Oh, good. Yeah he's definitely one of our top guys in terms of, your, know, everything that we look for, like, you know," the government says.

Aside from the outright problem that insider trading shouldn't be a crime, most of what appears to be going on here is a huge fishing expedition, coupled with using salesman hype as evidence of wrongdoing.

If you look at this activity, along with the obvious entrapment going in with so-called domestic "terror plots", the police state in America is alive, well and growing. First they entrap domestic "terrorists", and then they go on a fishing expedition for insider traders. Without huge cries of outrage from the public, these tactics aren't going to stop here. And, I hardly see any outrage. Thus, the only question then becomes: "What industry or activity will they target next?"