How is that not profiting from crime?
That's profiting from crime, in a way, but it's all you can do when it's not within your power to subpoena Apple internal memos or what have you.
As I read this article, this is more or less this is what JPM is being punished for doing, because in theory the small exotics group in the UK could have called the US headquarters and inspired them to contact the SEC, which didn't happen.
Your crimes aren't magically washed away because the SEC wasn't doing their job well.
Now, you seem to think that there should be communication between a trading desk and Madoff's custodian. Any compliance officer would disagree. There is simply too much risk of front running the client's account to allow this (especially when the account is as large as Madoff's).
I know generally you can just start selling low or whatever, but shorting would make you a huge profit if this worked while selling low potentially a loss?
A good place to start is http://www.deepcapture.com/the-story-of-deep-capture-by-mark... or http://www.deepcapture.com/category/1-the-players/
edit: changed starting suggestions because the website is confusingly laid out and some links don't seem to work.
