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.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...