Subject: Ali Far

Subject of Interest

Ali Far is a former employee at the Galleon Group. He left in 2008 to start his own Hedge fund (Spherix Capital Partners) with his Partner, Richard Choo-Beng Lee, aka “C.B.” Far was sentenced to one year of probation for his participation in multiple insider trading schemes during which he obtained, shared, and traded based on material, non-public information (“inside information”) stolen from several public companies. Far pled guilty in October 2009 to one count of conspiracy to commit securities fraud and one count of securities fraud pursuant to a cooperation agreement with the government. Together, he and his co-conspirator at Spherix gained approximately $5,209,464 for their hedge fund by placing trades in Spherix accounts based on Inside Information.

Former Galleon Group Employee and Hedge Fund Founder Ali Far Sentenced in Manhattan Federal Court for Insider Trading

Galleon Group

Subject: Danielle Chiesi

Subject of Interest

Danielle Chiesi is a former beauty queen turned stock analyst that helped former Galleon Group founder Raj Rajaratnam with insider trading. Chiesi pleaded guilty on three counts of securities fraud, and was sentenced to a West Virginia Prison in 2011. She served 15 months before being released. She agreed to pay $540,000 to settle related civil charges with the Securities and Exchange Commission.

Danielle Chiesi to Pay $540,000 in Insider Trading Case

Galleon Group

Subject: Raj Rajaratnam

Subject of Interest

Raj Rajaratnam is a Sri Lankan-American former hedge fund manager and founder of the Galleon Group, a New York-based hedge fund management firm. On October 16, 2009, he was arrested by the FBI for insider trading, which also caused the Galleon Group to fold. He stood trial in U.S. v Rajaratnam (09 Cr. 01184) in the United States District Court for the Southern District of New York, and on May 11, 2011, was found guilty on all 14 counts of conspiracy and securities fraud. On October 13, 2011, Rajaratnam was sentenced to 11 years in prison and fined a criminal and civil penalty of over $150 million combined. Rajaratnam was released to home confinement in his Upper East Side Manhattan apartment, located on Sutton Place, in the summer of 2019.

Wikipedia

Galleon Group

Article: Stephen Cohen’s hedge fund SAC Capital charged with insider trading

Article - Media, Publications

Stephen Cohen’s hedge fund SAC Capital charged with insider trading

Reuters, 26 July 2013

US prosecutors indicted billionaire Steven A. Cohen’s hedge fund for insider trading, a rare move that could end the career of one of Wall Street’s most successful investors and trigger a fundamental change in how traders try to gain an edge over rivals.

The government accused SAC Capital Advisors LP of presiding over a culture where employees flouted the law and were encouraged to tap their personal networks of contacts for inside information about publicly traded companies. Continue reading “Article: Stephen Cohen’s hedge fund SAC Capital charged with insider trading”

Article: A hedge on the edge: SAC Capital’s insider trading scandal

Article - Media, Publications

A hedge on the edge: SAC Capital’s insider trading scandal

The Conversation, 26 July 2013

After causing the collapse of the Galleon Group hedge fund in 2009, insider trading enforcements have once again shaken the hedge fund industry. Late last week, the US Securities and Exchange Commission (SEC) charged Steven A. Cohen, CEO of SAC Capital Advisors LP, one of the world’s largest hedge funds, with failing to supervise two of his managers, Mathew Martoma and Michael Steinberg, who traded on material non-public information concerning three US listed companies in 2008. Continue reading “Article: A hedge on the edge: SAC Capital’s insider trading scandal”

Article: U.S. charges SAC Capital with insider trading crimes

Article - Media, Publications

U.S. charges SAC Capital with insider trading crimes

Emily Flitter, Svea Herbst-Bayliss, Jonathan Stempel, 25 July 2013

U.S. prosecutors indicted billionaire Steven A. Cohen’s hedge fund for insider trading, a rare move that could end the career of one of Wall Street’s most successful investors and trigger a fundamental change in how traders try to gain an edge over rivals. Continue reading “Article: U.S. charges SAC Capital with insider trading crimes”