Indian American charged in US insider trading
February 9th, 2011 - 11:39 am ICT by IANSBy Arun Kumar
New York, Feb 9 (IANS) Intensifying a crackdown on alleged insider trading by hedge funds, US prosecutors have brought criminal charges against Samir Barai, an Indian-American hedge fund portfolio manager and three others.Barai and Donald Longueuil, a former manager at hedge fund operator SAC Capital Advisors, were accused of insider trading by federal prosecutors here Tuesday as two other men pleaded guilty to related charges.
In addition, prosecutors said Jason Pflaum, a former research analyst at Barai’s firm, and Noah Freeman, who worked at SAC Capital, had pleaded guilty to one count each of conspiracy to commit securities fraud.
The US has brought insider-trading charges against more than 30 people since October 2009 as part of the probe.
A trial in the case at the centre of the investigation, against former Galleon Group LLC co-founder Sri Lankan-American Raj Rajaratnam, is scheduled to begin Feb 28 in New York. He denies wrongdoing.
The actions in federal court in New York are the latest in a widening investigation by a special hedge fund task force created by the Securities and Exchange Commission to stem financial crimes.
The new allegations and guilty pleas, US Attorney Preet Bharara in Manhattan said, are “a sad chronicle not only of criminal conduct but also its brazen coverup.
“And the lengths to which two of these defendants went to cover their tracks sounds like something out of a bad movie.”
Twelve people have been charged by Bharara’s office on suspicion of illegally sharing non-public information about companies to obtain an unfair trading advantage. Four have pleaded guilty, Bharara said, “but we are far from finished.”
Barai, 39, and Longueuil, 34, both of New York, were each charged with one count of conspiracy to commit securities fraud and wire fraud and one count of obstruction of justice.
Barai also was charged with three counts of substantive securities fraud. Barai and Longueuil appeared briefly in court Tuesday but were expected to enter pleas later.
Authorities said all four men conspired from 2006 to 2010 to obtain inside information, including detailed earnings data, about numerous public companies.
(Arun Kumar can be contacted at arun.kumar@ians.in)
- Hedge fund managers arrested for insider trading case - Feb 09, 2011
- Hedge Fund Managers Arrested in Insider Case - Feb 09, 2011
- Indian-American pleads guilty in US to insider trading - May 28, 2011
- Indian-American hedge fund manager had at least 8 tipsters - Jun 15, 2011
- Insider 'cooks' gave Indian-American 'recipes' for 'sugar' - Jun 14, 2011
- Indian-American's tipster convicted of insider trading - Jun 21, 2011
- Rajaratnam's lawyers grill star Indian American witness - Mar 16, 2011
- Wall Street Sheriff Preet Bharara on Time cover - Feb 03, 2012
- Rajat Gupta's trial set for April 9 - Oct 27, 2011
- Indian-American witness gave 'bizarre' testimony: Rajaratnam's lawyer - Apr 22, 2011
- Indian American charged in biggest US insider-trading case - Jan 11, 2011
- Rajaratnam stole information to steal millions: Prosecution - Mar 10, 2011
- Rajat Gupta indicted in insider trading case - Oct 26, 2011
- World's richest Sri Lankan, two Indian Americans charged with insider trading (Lead) - Oct 17, 2009
- Rajaratnam made $63.8 mn through inside trading - Apr 07, 2011
Tags: arun kumar, coverup, federal prosecutors, financial crimes, fund portfolio, galleon, galleon group, guilty pleas, hedge fund, insider trading, longueuil, obstruction of justice, pflaum, preet bharara, raj rajaratnam, research analyst, sac capital advisors, securities and exchange commission, securities fraud, wire fraud