Rajaratnam Settles SEC Case, Analyst Indicted On IBM-related Insider Charges

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Galleon Group LLC co-founder Raj Rajaratnam, who is serving 11 years in prison for insider trading, agreed to pay $1.5m to settle a civil case brought by the U.S. Securities and Exchange Commission.

Bloomberg reports that Rajaratnam agreed to pay $1.3mi representing profits gained and losses avoided as a result of the conduct the SEC alleged in the case, according to a filing yesterday in federal court in New York. He will also pay $147,738 in interest.

Rajaratnam was convicted of directing the biggest hedge fund insider-trading scheme in U.S. history. At trial, the government introduced 45 wiretap recordings, along with documents and testimony derived from the wiretaps.

The news organisation also reports that Australian financial analyst Trent Martin was indicted in the U.S. on charges stemming from an alleged insider-trading scheme tied to IBM’s $1.2bn acquisition of SPSS Inc.

Martin was charged with conspiracy and securities fraud, federal prosecutors in Manhattan said Wednesday in a statement. Martin also faces a civil suit over the alleged scheme filed by the U.S. Securities and Exchange Commission.

Prosecutors and the SEC didn’t identify where Martin worked when the alleged crimes occurred. According to the SEC’s complaint, Martin left a New York brokerage in September 2009 to join a 'related' firm in Stamford, Connecticut, where he remained until November 2010.

Prosecutors said that Martin, 33, learned confidential information from a corporate lawyer, not identified in court papers, who was working on the IBM deal and with whom he was close friends.

Rajaratnam Agrees to Pay $1.5 Million to Settle SEC Case

Analyst Indicted on Insider-Trading Charges Tied to IBM

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