Khan, Rajaratnam Witness, May Nail Others In Insider Case

Dec 5 2011 | 11:21am ET

Once expected to be the star witness against Galleon Group founder Raj Rajaratnam, Roomy Khan's questionable past led prosecutors to exclude her entirely from the insider-trading trial of the century. But the former Galleon trader and Intel Corp. employee may yet prove her worth in court.

Khan is "continuing to cooperate in connection with the investigation of at least one individual who has not yet been charged," prosecutors said in a letter made public on Thursday. Khan, who pleaded guilty to insider-trading charges as part of her cooperation agreement, was to be sentenced today, the same day Rajaratnam, who was convicted without her testimony, is to report to prison to begin an 11-year term.

Khan will now be sentenced in March.

It is unclear who Khan is cooperating with prosecutors about. But if her assistance should lead to an arrest or two, the past that kept her out of the Rajaratnam trial—her guilty plea on the Galleon insider-trading charges was her second insider-trading conviction—will certainly be exploited by a new set of defense attorneys.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of