A hedge fund manager and his Menlo Park, Calif.-based firm have been charged by the SEC for their involvement in the insider trading ring connected to Raj Rajaratnam and hedge fund advisory firm Galleon Management. The pair illegally traded based on material nonpublic information obtained from the hedge fund manager's associate, who was his friend and neighbor. The firm reaped nearly $1 million in ill-gotten gains by trading on Khan's illegal tips.
Sanjay Wadhwa, Associate Director of the SEC's New York Regional Office and Deputy Chief of the Market Abuse Unit, added, "This action should send a strong signal that the SEC will continue to pursue every angle of the Galleon investigation to hold accountable those who have undermined the integrity of our markets by engaging in illegal insider trading."
California Hedge Fund Manager Connected to Galleon Insider Trading Case
