Another Guilty Plea to Inside Trading

MANHATTAN (CN) – An account manager for Taiwan Semiconductor Manufacturing Co. pleaded guilty Wednesday to an insider trading scheme run through an expert networking firm, federal prosecutors said. Manosha Karunatilaka admitted he shared confidential information with the networking firm Primary Global Research.

     Karunatilaka told U.S. District Judge Jed Rakoff that Primary Global paid him $200 for each conversation, and that Taiwan Semiconductor did not know about the payoffs.
     He was charged in an information with conspiring to commit wire fraud and securities fraud.
     Karunatilaka is the sixth person to be charged in the federal investigation of expert networking firms. He admitted in his plea agreement that the information he provided brought more than $1 million in trading gains.
     “Manosha Karunatilaka thought he could moonlight for an expert networking firm and sell out his employer in the process,” U.S. Attorney Preet Bharara said in a statement. “With today’s guilty plea, it should now be abundantly clear that his short-term financial gain was hardly worth it.”
     Karunatilaka faces up to 5 years in prison when he is sentenced on Sept. 15.

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