Saturday, 30 July 2016
Last updated 17 hours ago
Oct 29 2012 | 1:00pm ET
A former technology executive and friend of Galleon Group founder Raj Rajaratnam has settled allegations that he passed the now-imprisoned hedge fund manager confidential information about his company.
Kris Chellam agreed to pay $1.75 million in a deal with the Securities and Exchange Commission. The regulator had accused the former Xilinx Inc. CFO of tipping Rajaratnam about the company at the end of 2006, allowing the latter to make almost $1 million in illegal profits.
Chellam allegedly told Rajaratnam that Xilinx, which makes programmable chips, would miss its revenue projections. Six months later, Chellam was working for Galleon, and was an investor in his funds.
Chellam, a close friend of Rajaratnam, who is serving 11 years in prison, was not criminally charged. Nor was Xilinx accused of wrongdoing. The California man's deal must still be approved by a federal judge.