Two hedge fund managers implicated in the Galleon Group insider-trading scandal, including one that formerly worked at SAC Capital Advisors, have settled Securities and Exchange Commission charges.
Ali Far and Richard Choo-Beng Lee, founders of the now-defunct Spherix Capital, agreed to pay $2.1 million to settle the SEC’s lawsuit. The two have already pleaded guilty to criminal charges and are cooperating with prosecutors in a case that has snagged 21 people, including Galleon Group founder Raj Rajaratnam.
U.S. District Judge Jed Rakoff must approve the settlement, which includes the disgorgement of all illegal profits from insider-trading, the SEC said.
According to Lee’s cooperation agreement with the government, he has been trading on non-public information since 1994, including during his stint at SAC, which ended in 2004. Neither SAC nor anyone still working for the Stamford, Conn.-based hedge fund giant have been accused of any wrongdoing in the case.