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> She risked, and lost, all that and ended up going to prison for acting on inside information

That is not why she went to prison.

Pray tell, why then?

> for lying to federal investigators about a stock sale that she called ''a small personal matter.''

The charge (amongst others) that caused her to serve time in jail was 18 U.S.C. § 1001 (making false statements to federal investigators).

The why was most likely insider trading allegations.