Galleon Hedge Fund – Insider Trading Ring
Here are the insider trading charges against Galleon’s founder and here is an NYT article on the scam. The insider trading ring is described as follows;
” As outlined by law enforcement officials, Mr. Rajaratnam tapped a vast network of informants across a swath of corporate America: a senior official at I.B.M. considered a contender for the top job at that firm; executives of Intel and the consulting firm McKinsey & Company; two former Bear Stearns employees who had moved to a hedge fund, New Castle Partners; and an analyst at Moody’s Investors Service.
While trading secrets, though, one crucial piece of information was not shared — the phones were tapped. The wiretaps, said by prosecutors to be the first in an insider-trading case, were made with the assistance of an unnamed cooperating witness, a former Galleon employee who was said to ply Mr. Rajaratnam with information originally to land a job.”