Ex-Galleon Trader Gets Probation

Feb 12 2013 | 1:22pm ET

Another insider-trading informant has been spared a prison cell.

Ali Far, a former portfolio manager at Galleon Group, was sentenced to one year of probation yesterday, and ordered to pay a $100,000 fine and perform 100 days of community service. Far is the fourth cooperating witness sentenced in the last several weeks; the only one who received any jailtime was Roomy Khan, whom prosecutors said had routinely lied to authorities.

Far began cooperating with authorities three years ago, two years after he ended an eight-year stint at Galleon. He then founded hedge fund Spherix Capital with another cooperator in the Galleon case, Richard Choo-Beng Lee, and continued his insider-trading, which began in 2003, at the new firm, prosecutors said.

Galleon founder Raj Rajaratnam suspected that Far had turned state's evidence against him; in a conversation with a friend, former McKinsey & Co. partner Anil Kumar, "I'm told there's a gentleman who used to work for me and he's now wearing a wire." Kumar also cooperated with prosecutors and helped send Rajaratnam to prison for 11 years.

Far was also ordered to continue to cooperate with the authorities and has been barred from the financial services industry.

"While I cannot change the past, I promise that I will do what I can to make up for it," Far said.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...