Analyst Arrested, Charged With Tipping SAC

Jul 30 2013 | 1:03pm ET

A technology analyst has been arrested for passing insider tips to a former SAC Capital Advisors portfolio manager.

The Federal Bureau of Investigation arrested Sandeep Aggarwal in San Jose, Calif., today. Aggarwal is due to appear in San Francisco federal court later today for arraignment, before being sent to New York to face the charges.

According to prosecutors and the Securities and Exchange Commission, Aggarwal, a former Internet analyst at Collins Stewart, gave confidential information about Microsoft Corp. to Richard Lee. Lee, a former SAC money manager, pleaded guilty to insider-trading charges last week in connection with the criminal charges filed against SAC itself on Thursday.

Aggarwal received the information, about a planned deal between Microsoft and Yahoo!, from a friend at the former company. That person was not identified. According to the criminal complaint against him, Aggarwal received the information in July 2009 and then informed Lee. Aggarwal also tipped a second hedge fund, which was also not identified.

Aggarwal, an Indian citizen and U.S. permanent resident, returned to the U.S. from his native country to face the charges. He currently runs his own research firm, DigitalRoute, and divides his time between California and New Dehli, and has been frequently featured in print and broadcast media.

"Like many others before him, Sandeep Aggarwal allegedly broke the law and provided material non-public information on a Microsoft-Yahoo deal," George Venizelos, an assistant director at the FBI, said. "When questioned by his employer about the source of the information, he lied."


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of