Four More Charged in Galleon Inside Trading

     MANHATTAN (CN) – Four more people and a hedge fund adviser – Trivium Capital Management – were charged Monday in the SEC v Galleon inside-trading case. The SEC claims that the exchange of inside information about Google, Hilton, Polycom and Kronos resulted in more than $15 million of ill-gotten gains.




     Sued along with Trivium on Monday were Robert Feinblatt, a cofounder and principal of Trivium; Jeffrey Yokuty, a Trivium analyst; Sunil Bhalla, a “senior executive” at Polycom; and Shammara Hussain, whom the SEC describes as “an employee at investor relations consulting firm Market Street Partners that did work for Google, [and] tipped the inside information that enabled the insider trading by Feinblatt and Yokuty on behalf of Trivium’s hedge funds for illicit profits of more than $15 million.”
     In a statement announcing the latest round in the legal case that aims ultimately at Raj Rajaratnam, who founded and controlled the Galleon hedge fund, the SEC called the latest defendants “faithless company executives who secretly pass corporate information to hedge fund managers willing to violate the law for profit.”
     The SEC said it has charged 27 defendants in its crusade against Galleon.
     Rajaratnam, the alleged kingfish who was arrested in October 2009, has pleaded innocent to inside-trading charges and is awaiting trial.
     Rajaratnam, the richest Sri Lanka-born person in the world, was released after paying the highest bail in U.S. history: $100 million, secured by $20 million in cash and property, according to newspaper reports.

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