She should be forced to pay up what she didn't lose.
serve jail time, or whatever sentence the law demands.
You cannot have the only punishment for insider trading be that the criminal lose the money that their crime allowed them to keep - otherwise there would be no disincentive to keep people from attempting such crimes in the first place.
Think of it this way - Martha knows she'll lose $40,000 if she doesn't sell the stock using her insider info...but if breaking the law only results in the same $40K loss, then there's no reason for someone not
to attempt to break the law!
There HAS to be a big consequence (such as jail time) for such actions.
It's all academic anyway; she wasn't charged with insider trading to begin with! She was charged with and convicted of:
obstruction of justice
making false statements
So it's not like paying back what money she avoided losing will undo the charges she's actually been convicted of, anyway.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
Comments made here are my own and are not intended to represent the official position of Alaska Air Group