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

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Artivest Announces Funding Round Led by KKR & Co.

May 4 2015 | 9:56am ET

Artivest, a startup that provides individual investors with access to private equity...

Guest Contributor

Starting a ‘40 Act Fund Family? Don’t Forget Your Board

Apr 30 2015 | 7:18am ET

The convergence of the hedge fund and mutual fund worlds continues unabated, as...

 

Editor's Note