Ali Far, a former Galleon Group LLC fund manager, was spared a prison sentence after giving prosecutors 'substantial assistance' by secretly recording conversations with the fund’s co-founder Raj Rajaratnam and three other insider traders.
Bloomberg reports that Far, 51, who worked for Rajaratnam from 1999 to 2007 and left Galleon to start Spherix Capital LLC with Richard Choo-Beng Lee, was sentenced Monday to one year of probation. He agreed to cooperate with the government’s then-covert probe of Galleon after he and Lee were approached by Federal Bureau of Investigation agents in April 2009. Lee also pleaded guilty and is cooperating with the U.S. He hasn’t been sentenced.
Far worked covertly for six months for the U.S., recording at the direction of the FBI about 244 phone calls, Assistant U.S. Attorney Reed Brodsky told U.S. District Judge Robert Patterson in Manhattan Tuesday. Far’s cooperation continued for three and a half more years, his lawyer, Andrew Lourie, said.
'The defendant was instrumental in Mr. Rajaratnam’s conviction and it’s vital to get credit for that', Patterson said. 'I’m going to take into account that for all intents and purposes, the defendant has been in probation for the last four years when he has had to report to the U.S'.
The judge fined Far $100,000 and ordered him to perform 100 days of community service. At the request of prosecutors, Far was instructed to continue cooperating with the government. Far had already agreed to forfeit $667,000 in illicit profit from his insider trading, Lourie told the judge.
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