Tuesday, 29 July 2014
Last updated 18 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…