On October 16, 2009, the
Securities and Exchange Commission (SEC) instituted a civil injunctive action
in the United States District Court for the Southern District of New York
charging Raj Rajaratnam and his hedge fund advisory firm Galleon Management LP
with perpetrating a massive insider trading...
Mark Kurland became the
first defendant to be sentenced in the Galleon insider trading cases, discussed here . He
had previously pleaded guilty to conspiracy and securities fraud. The court
sentenced Mr. Kurland to serve twenty seven months in prison followed by two
years of probation. He will also...
The Galleon insider trading investigations continues to
spawn more actions. Roomy Kahn, familiar to those who have followed the Galleon
saga, and others players and even some allegations from the earlier cases form
the backdrop of the SEC's latest insider trading to evolve from these
In what is beginning to look like a continuing stream of
guilty pleas, Danielle Chiesi pleaded guilty in the Galleon insider trading
cases. She is one of the original defendants in the Galleon cases. Ms. Cheisi
pleaded guilty to three counts of conspiracy to commit securities fraud. She
As the Galleon trial approaches the insider trading ring
that that began with two Ropes and Gray associates and the Galleon
investigation keep spawning insider trading cases. Two new SEC civil insider
trading actions and a criminal case were filed.
In SEC v. Smith , Civil Action No. 11-CV-0535...
On the eve of the criminal insider trading trial of Raja
Rajaratnam the SEC unveiled the latest chapter in the investigation into the
founder of Galleon Management LLC: he had been illegally tipped by a former
Goldman Sachs and current Proctor and Gamble board member. In an Order for
The Gupta insider trading case is a significant,
high profile action by an SEC Enforcement program which is working hard to
restore its lost luster. Mr. Gupta is a former Goldman Sachs director, a firm
which is an icon of Wall Street. He is a current director of Proctor and
Gamble, a company with...
No Big 4 audit firms or their partners have been named in
the insider trading scandal surrounding the now-defunct hedge fund Galleon
Management. But the SEC has accused one of the most prominent businessmen ever
implicated in such crimes, Rajat Gupta, a former McKinsey & Company Global
The ongoing Galleon trial, and all the related SEC and
criminal investigations, have renewed the focus on insider trading. What is it?
When do you become restricted? How do you handle an investigation if misfortune
strikes and you become involved in one?
The law of insider trading is surprisingly...
Another defendant in the on going Galleon insider trading
investigation was sentenced to prison. This time it was Jason Goldfarb who
previously pleaded guilty. The court sentenced Mr. Goldfarb to three years in
prison. U.S. v. Goffer, No. 1:10-cr-00056 (S.D.N.Y.).
Mr. Goldfarb was involved in the...
The SEC resolved two Galleon related insider trading
cases. One involved Robert Feinblatt, a co-founder and former principal of
hedge fund Trivium Capital Management LLC. SEC v. Feinblatt, Civil
Action No. 11-CV-0170 (S.D.N.Y.). The other was against Anthony Scolaro, a
former portfolio manager at...
You could watch the movie Wall
Street and many things may still ring true. Of course its the 1980s, so
the clothes and the women's hair stick out. But the icon is the big brick cell
phone. It was huge and expensive for its time. And all it did was makes phone
calls. It was enough of an iconic...
Former Goldman Sachs and Procter & Gamble director
Rajat Gupta was charged with insider trading in a criminal indictment and an
SEC complaint. He is alleged to have repeatedly tipped Raji Rajaratnam who is
also named as a defendant in the Commission's complaint. These may well be the
Roomey Kahn, the former Intel executive turned government
informant who helps spur the Galleon inquiry at the outset continues to aid
enforcement officials in developing insider trading cases. Now she is a key
witness against her neighbor and friend, Douglas Whitman, president and
Raj Rajaratnam, the founder of the Galleon Group hedge
fund lost his appeal on insider trading charges. U.S. v. Rajaratnam, Docket
No. 11-4416-cr (2 nd Cir. Decided: June 24, 2013). Mr. Rajaratnam was
convicted on five counts of conspiracy to commit securities fraud and nine
counts of securities...