Star Witness In Galleon Case Settles SEC Lawsuit

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.


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Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

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