Hedge Fund Manager Charged with Insider Trading

Last week’s big enforcement news was that Galleon Group founder, Raj Rajaratnam, was chargedĀ  with insider trading in the stocks of several companies, including Advanced Micro Devices, Clearwire and Akamai, earning millions of dollars in the process.

Federal prosecutors for the Southern District of New York accused Raj Rajaratnam with illegally obtaining and trading on information on these companies, which also included Polycom, Hilton Hotels, Google and People Support. He has been charged with four counts of conspiracy and eight counts of securities fraud. Others charged by prosecutors include Rajiv Goel, an executive Intel Capital, the venture capital arm of Intel, and Anil Kumar, an executive at McKinsey & Company.

You can view the full complaint here.

According to FINalternatives, this is just the tip of the Insider-Trading Iceberg:

Other hedge fund managers are among those expected to be charged, according to Bloomberg News, the result of a two-year-long investigation. Among those likely to be charged are individuals who came up during the surveillance of Rajaratnam, which included wiretaps. Authorities are also being helped by at least three former Rajaratnam colleagues, including California-based hedge fund managers Ali Far and Choo Beng Lee, according to The Wall Street Journal.

This entry was posted in Enforcement, Fraud by Jordan. Bookmark the permalink.

About Jordan

Jordan is a Partner and Vice President at HedgeOp Compliance, LLC. He is in charge of the development, growth and marketing of HedgeOp's ComplianceTrak software. Prior to joining HedgeOp in March of 2003, Jordan worked at Euromoney Institutional Investor, Plc., as a Client Services Executive. While there, he worked with senior level executives in the New York and Canadian banking communities to plan and coordinate financial and legal training seminars. Jordan graduated with a B.S. in Applied Economics Management from Cornell University.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>