By Meena Kar
Boston, October 22, (THAINDIAN NEWS) Investigations of the Galleon Group insider trading case has taken a new turn after the authorities have successfully identified the informant who helped Raj Rajaratnam with all the information about different companies. Securities and Exchange Commission had identified Roomy Khan as ‘Tipper A’ who provided several insider information to Mr. Rajaratnam. As stated by the sources, Roomy Khan would plead guilty to the charges of conspiracy. Sources also stated that she would cooperate with the authorities so that her penalty is lighter compared to others.

Ms.Khan had provided several evidences related to the insider trading case. She confessed of informing Mr.Rajaratnam several insider information related to different stocks and Google. The lady had also recorded conversations that she had with Mr.Rajaratnam. Ms.Khan was earlier in news after being accused by her housekeeper for paying less wage than stated in wage laws.

Raj Rajaratnam, the portfolio manager of the Galleon Groups was freed from police custody by depositing one hundred million dollar bail amount. He assured his clients that they would be able to transfer their stocks to cash. As stated by the sources, the hedge fund company has decided to wind up after the manager was arrested with the charges of insider trading. As stated by the sources, the company had to take such a decision as the investors have been pulling out their funds from the company.

As stated by the sources, the hedge fund company earlier used to handle a fund of nearly seven billion dollars. However, the amount has later dropped down to 3.7 billion dollars. It might be for the negative publicity that the company had received in the recent days.