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

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of