'Tipper X' Hit With $19,000 Fine In Galleon Case

Apr 26 2011 | 12:16pm ET

The man described as the link between the two interlocking insider-trading rings in the Galleon Group scandal has been ordered to pay $19,000 to settle a Securities and Exchange Commission lawsuit.

Thomas Hardin, a former trader at hedge fund Lanexa Global Management known at "Tipper X" until he was identified in the press last January, agreed to the judgment, filed today in New York federal court. The SEC, which sued him in November after he pleaded guilty to criminal insider-trading charges, accused him of illegally trading names including Google Inc., Hilton Worldwide and Kronos Worldwide.

Galleon founder Raj Rajaratnam, who is awaiting the verdict in his criminal trial, and the other half of the insider-trading circle, three of whose alleged members are to go on trial next month, are accused of trading in many of the same stocks. Hardin allegedly received some tips from Roomy Khan, a former Intel Corp. executive who claims to have passed the tips to Rajaratnam, as well, and others from Gautham Shankar, an alleged member of the second ring.

Hardin has been cooperating with prosecutors in the case. If he is ordered to forfeit more than $40,000 at his sentencing in the criminal case, the SEC will credit him for any amount over that figure.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.