Another Guilty Plea In The Works For Galleon Prosecutors

Feb 5 2010 | 11:29am ET

Prosecutors in the Galleon Group insider trading case appear poised to win their ninth guilty plea.

Rajiv Goel, a former managing director at Intel Corp., has agreed to waive his right to be indicted by a grand jury, the U.S. Attorney’s office said this week. Instead, he’ll be charged in a criminal information, which generally indicates that a plea agreement has been reached.

Goel was arrested in October and charged with passing confidential tips to Galleon founder Raj Rajaratnam, who has pleaded not guilty. Goel would be the second alleged tipster at Intel to plead guilty; former colleague Roomy Khan, the government’s star witness in the case against Rajaratnam, has already done so and agreed to testify against Rajaratnam, her former boss at Galleon.

According to prosecutors, Goel passed insider-information about both Intel and its clients to Rajaratnam, which Rajaratnam used both for his and his hedge fund’s profit, as well as for Goel’s.

“Rajaratnam placed profitable trades for the benefit of Goel in a personal brokerage account maintained by Goel at Charles Schwab,” prosecutors allege.

Goel would also be the third person to admit passing tips on to Rajaratnam, following Khan and former McKinsey & Co. director Anil Kumar, who claimed that Rajaratnam paid him for information.

It is unclear whether Goel is cooperating with prosecutors. Seven of the eight who have pleaded guilty in the case are doing so; only New Castle Funds co-founder Mark Kurland has pleaded guilty without a cooperation deal. A total of 21 people have been charged in the case, and nine have pleaded not guilty.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.