Friday, 28 April 2017
Last updated 15 hours ago
Jun 21 2011 | 8:18am ET
Former Galleon Group trader Adam Smith, a key witness against that firm’s founder in the successful insider-trading prosecution, has settled civil charges filed by the Securities and Exchange Commission.
Smith agreed to pay almost $150,000 in disgorgement and prejudgment interest on his illicit earnings trading shares of ATI Technologies. Smith, who pleaded guilty to criminal insider-trading charges in January, was not fined as a result of his cooperation with the SEC’s probe.
Smith testified at Galleon founder Raj Rajaratnam’s trial that he received and traded on insider-information about four companies, with Rajaratnam’s knowledge and approval. He added that Rajaratnam all but ordered him to ferret out material non-public information to trade on, and that he passed tips on to his then-boss.
Rajaratnam was convicted of all charges and faces decades in prison.