We can argue that someone should put their money where their mouth is. In a difficult world where lines are blurred, it is a Herculean task to determine what is for or against the public interest. We read about our regulatory bodies and the extent to which they have failed to prevent an abuse from taking place. In comparison, Japan's securities markets are notorious for self-serving behavior that has driven the Japanese investing public away from the equities markets. This inability to clean up its equity markets, combined with a corrupt political system, is a major factor in the decline of the Japanese economy.
Regulatory action is an important deterrent to illegal activity.
Most financial services professionals do not want to spend time in jail or even court. When arresting a white-collar suspect, the FBI has a practice of sending four agents for each alleged perpetrator because the strength in numbers helps avoid a scene. Years ago at Kidder Peabody, the Feds made a point of slapping handcuffs on everybody they escorted from the building. Thanks to our regulatory bodies, we have a reasonably level playing field upon which to invest, but getting objective advice is a struggle. Absorb as much financial education as possible and search, through friends and referrals, for a good financial planner, money manger or broker if you feel you need additional help.