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.

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