Wednesday, 29 June 2016
Last updated 4 hours ago
Sep 16 2010 | 1:43pm ET
A government informant in the Galleon Group insider-trading case has settled charges that he was trading on confidential information long before he wore a wire.
David Slaine agreed to pay $836,385 in disgorgements of illegal profits to settle the Securities and Exchange Commission case. The SEC sued Slaine in February, after his December guilty plea on seven-year-old insider-trading charges. Slaine admitted to trading on non-public information while at Chelsey Capital in 2002.
Slaine previously agreed to forfeit $532,287 as part of his guilty plea, a sum that will go towards his SEC settlement. He still faces up to 25 years in prison when he is sentenced.
Slaine wore a wire that produced some of the wiretaps at the heart of the government’s case against Galleon founder Raj Rajaratnam and the 20 others ensnared in the scheme.