SEC Seeks $10M From Galleon Fugitive

Jun 27 2011 | 1:28pm ET

The Securities and Exchange Commission has asked a court to order the last of the 28 people charged in the Galleon Group insider-trading case to avoid conviction to pay almost $10 million.

The regulator told the federal court in Manhattan that Deep Shah had not responded to its 2009 lawsuit and asked for a default judgment against the former Moody's Investors Service analyst. Shah, who is accused of passing confidential information to Roomy Khan, a former Galleon and Intel Inc. employee and one of Galleon founder Raj Rajaratnam's key tipsters, is a fugitive, believed to be in India.

Earlier this year, the SEC told the court that it had located Shah in the tony Mumbai neighborhood of Juhu, where a bailiff in that city affixed a copy of the SEC's amended complaint to Shah's apartment door.

The SEC said that Shah's tips earned members of the Rajaratnam insider-trading circle $8.2 million. It is seeking $9.9 million, which includes both the profits earned on his tips by others and payments for the tips.

Shah is accused of passing tips about the Blackstone Group's impending takeover of Hilton Hotels and about Google Inc. According to the complaint against Khan, who cooperated with authorities, she paid Shah $10,000 for the Hilton tip.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

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.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR