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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…