Wednesday, 28 January 2015
Last updated 5 hours ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…