Thursday, 21 August 2014
Last updated 19 min ago
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.
Aug 4 2014 | 7:42am ET
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The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note