What was the legal basis under which Raj Rajaratnam won a hearing on the wiretaps used against him?

According to this post by Steven Meyerowitz over at the Financial Fraud Law blog: The defendant must make "a substantial preliminary showing that a false statement knowingly and intentionally, or with reckless disregard for the truth, was included by the affiant in the warrant affidavit." When a businessman "knowingly and intentionally" makes a false statement in his SEC filing, the potential penalty is 20 years in prison. And in the backdating case of Greg Reyes, the government demanded prison time. What punishment will be visited on the prosecutors in the Galleon insider trading case if it turns out that they knowingly made false statements to the courts in order to obtain wiretaps? None.

And then there is this: "The Internal Revenue Service (IRS) received an appropriation of $203 million in American Recovery and Reinvestment Act of 2009 (Recovery Act) funds. TIGTA [Treasury Inspector General for Tax Administration] determined that the IRS did not always comply with Recovery Act procurement requirements."

So, is there any punishment for bureaucrats who violate the government's 10,000 Commandments? Or is that just for businessmen?


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