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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.