Saturday, 28 May 2016
Last updated 7 hours ago
Sep 23 2013 | 11:45am ET
An alleged Raj Rajaratnam tipster has settled with the Securities and Exchange Commission.
Kieran Taylor agreed to pay more than $145,000 and to be banned for five years from serving as an officer or director of a public company, the regulator said. Taylor is accused of passing information about Akamai Technologies, where he was a senior director of marketing, to Rajaratnam co-conspirator Danielle Chiesi. Chiesi, in turn, it said to have passed the tips to the Galleon Group founder and S2 Capital Management chief Steven Fortuna.
Chiesi, who pleaded guilty in the case and served more than a year in prison, told Rajaratnam that Taylor had relayed that Akamai was "going to guide down a lot" before the company cut its revenue forecast in 2008. Chiesi, Rajaratnam and Fortuna earned a combined $9.9 million shorting Akamai shares, while Taylor himself avoided some $20,000 in losses by selling his.
"Taylor's willing misuse of information about Akamai's financial situation otherwise unknown to the rest of the investing public made him just another cog in the sprawling Rajaratnam insider-trading machine," the SEC's Sanjay Wadhwa said.
Rajaratnam is serving an 11-year prison sentence. Fortuna received probation after cooperating with prosecutors.