Wednesday, 28 September 2016
Last updated 6 hours ago
Feb 23 2010 | 8:46am ET
Federal prosecutors appear poised to nab their 10th guilty plea in the Galleon Group insider-trading case.
Ali Hariri, a former vice president at Atheros Communications, has agreed to waive indictment, according to a court filing yesterday. Hariri will be charged in a criminal information, an indication that he has struck a deal with prosecutors.
Hariri is accused of conspiracy and securities fraud. Authorities say he passed confidential information about Atheros to Ali Far, a friend and former hedge fund manager. Far is a major cooperating witness in the Galleon case. He and Choo-Beng Lee, co-founders of the now-defunct Spherix Capital, have also settled civil charges filed by the Securities and Exchange Commission; like Far, Lee has also struck a plea deal with the government.
According to prosecutors, Hariri tipped off Far about Atheros’ lower forecast for the fourth quarter of 2008, and latter told him about the company’s fourth-quarter revenue.
Nine people, including Far and Lee, have pleaded guilty in the Galleon case, and eight are cooperating with investigators. Seven others, including Galleon Group founder Raj Rajaratnam, have pleaded not guilty. All told, 21 people have been charged in the case.