Hedge Fund Tipster Gets 18 Months In Expert-Network Case

Sep 16 2011 | 4:55am ET

An expert-network consultant who pleaded guilty to passing confidential information to hedge funds was sentenced to a year-and-a-half in prison yesterday.

Manosha Karunatilaka pleaded guilty in May to tipping off clients of Primary Global Research, which he served as a consultant, about his full-time employer, Taiwan Semiconductor Manufacturing. He was paid about $35,000 for the information, which helped earn an unidentified hedge fund about $1.7 million.

Prosecutors had sought a sentence of between three and four years, while Karunatilaka's own lawyer asked for six months in jail and six months house arrest.

"I want to say how sorry I am for my conduct," Karunatilaka told U.S. District Judge Jed Rakoff. "I am very sorry for my actions."

Karunatilaka is the second person—out of the 15 charged in the case and 13 that have pleaded guilty or been convicted—to be sentenced. Another former Primary Global consultant, Don Ching Trang Chu, received two years probation earlier this month.


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note