Friday, 25 July 2014
Last updated 8 hours ago
Aug 24 2011 | 12:51pm ET
A fugitive former Moody's Investors Service analyst has been ordered to pay almost $35 million for his alleged role in the Galleon Group insider-trading scandal.
Deep Shah, the only one of the 28 people charged in that case to avoid conviction, has been hit with a default judgment of $34.56 million. Shah fled to India after he was charged in November 2009; earlier this year, the SEC said it had located Shah in a tony Mumbai neighborhood, but was unable to speak with him. A bailiff in that city affixed a copy of the SEC's amended complaint to his apartment door.
Shah has not responded to the SEC's lawsuit, which accuses him of passing confidential information to Roomy Khan, a former Galleon and Intel Inc. employee and one of Galleon founder Raj Rajaratnam's key tipsters. Shah passed tips about the Blackstone Group's impending takeover of Hilton Hotels and about Google Inc.; he was paid $10,000 for the former tip, the SEC alleges.
Shah's tips earned members of the Galleon circle $8.2 million. Yesterday, U.S. District Judge Jed Rakoff ordered Shah to pay that in disgorgement, as well as a $24.6 million fine and $1.76 million in interest.
The SEC said it believes Shah is still in India; it is unlikely it will be able to recover the judgment against him.
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…