Top Galleon Witness Settles SEC Insider-Trading Case

Oct 29 2010 | 1:44am ET

Roomy Khan, the prosecution's star witness in the Galleon Group insider-trading case, has settled insider-trading charges leveled against her by the Securities and Exchange Commission.

Khan, a former Galleon employee cooperating with the investigation of Galleon founder Raj Rajaratnam, agreed to pay $1.9 million to settle the case. Khan had previously pleaded guilty to criminal insider-trading charges stemming from the Galleon case, the second time she has admitted to trading on confidential information.

Khan, a former Intel Corp. analyst, says she passed a series of tips on to Rajaratnam, in part to try to win a job at the New York hedge fund, where she worked briefly in the late 1990s. She also allegedly paid a Moody's Investor Service analyst, Deep Shah, $10,000 for inside information.

According to prosecutors, Khan earned $1.5 million trading on the confidential information herself.

Rajaratnam has denied any wrongdoing. His trial is currently set to begin in January.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note