Friday, 6 March 2015
Last updated 3 hours ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…