Before Enron's Ken Lay was sentenced to federal prison, he testified in his criminal trial that the spectacular collapse of Enron was due in part to short traders, the "vultures" of the financial world who bet that a company's stock will decline. The SEC this year expanded registration requirements to include more hedge fund managers, and there is serious discussion of even more expanded regulation of the funds. But professor Dale Oesterle argues that hedge funds have always been subject to basic state and federal fraud rules and statutes and that honest funds play a legitimate role in the financial markets, absorbing risk and providing liquidity.<br><br><a href='http://moritzlaw.osu.edu/faculty/digest.php?ID=51' target='_blank'>http://moritzlaw.osu.edu/faculty/digest.php?ID=51</a><br><br>