We've noted before that wiretap evidence has proven crucial in cases against alleged insider traders. The government has racked up three wins in a row, thanks in large part to the decision by prosecutors take the once-unprecedented step of using wiretaps. So far anyway, the decision has been vindicated.

The New York Times explores this and suggests that the power of the wiretaps is that it places the defendants at the scene of the crime in a viscerally powerful way. There's just something about hearing people in their own voices speaking about the deeds and misdeeds. The impact might have been mitigated by the defendants, but none of the three ever took the stand, which may strike some in hindsight as the wrong decision. Add to this the fact that all three defendants seemed to be covering their tracks a bit, either by speaking in code that were redolent in the case of Jiau of the code that organized crime members used. Rajaratnam took pains on some cases to ask others to create a paper trail of other trades to mask the trades in question.

This is powerful stuff for future defendants who want to roll the dice at trial. Statistically speaking, federal criminal prosecutors enjoy huge advantages. When wiretap evidence is thrown in the mix, rolling the dice may be even more of a loaded proposition. So for now, chalk one up for Team Bharara. But what about the ultimate effect? Wall Street banks and hedge fund executives are now keenly aware that taps are in the mix. You will not catch them speaking candidly on the phone and they will pay large sums to sweep their offices. The wiretap advantage may not be replicated in cases going forward.

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