Monday, 28 July 2014
Last updated 1 hour ago
Nov 8 2010 | 1:13pm ET
Ali Hariri, the former Atheros Communications executive who pleaded guilty to tipping off a hedge fund manager in the Galleon Group insider-trading case, has been sentenced to a year and a half in prison.
Hariri is the third person sentenced in the largest insider-trading case in U.S. history, and one of a dozen of the 21 people accused to plead guilty. Among those who have pleaded guilty is Ali Far, the former hedge fund manager Hariri admitted to providing with confidential information about Atheros.
Hariri did not cooperate with prosecutors, who accused him of providing Far with information about Atheros' fourth quarter 2008 results. Richard Choo-Beng Lee, who ran Spherix Capital with Far, has also pleaded guilty.
Hariri had faced up to 30 months in prison. His lawyer called the 18-month sentence imposed by U.S. District Judge Richard Holwell "fair."
Hariri was also ordered to pay a $50,000 fine.
Two others have already been sentenced in the case, which snared a whole host of hedge fund managers, including Galleon founder Raj Rajaratnam. Mark Kurland, the founder of hedge fund New Castle Partners and boss of Rajaratnam co-defendant Danielle Chiesi, was sentenced to 27 months in May, and Robert Moffat, the former IBM executive who admitted to passing tips to Chiesi, with whom he was having an affair, received a six-month sentence.
Chiesi has pleaded not guilty, as has Rajaratnam.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…