Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Monday, July 22, 2024 | Back issues
Courthouse News Service Courthouse News Service

Guilty Plea in Hedge Fund Insider Case

MANHATTAN (CN) - Ali Hariri, a former executive at Atheros Communications, pleaded guilty Wednesday to conspiracy and securities fraud in what federal prosecutors call the largest hedge fund inside trading case in history. It is one in a series of guilty pleas through which prosecutors are trying to draw a net around Raj Rajaratnam, founder and operator of the Galleon Hedge Fund.

Hariri admitted he tipped off a co-conspirator to Atheros' earnings report. The co-conspirator then bought more than half a million shares of Atheros before the public announcement sent the share price up by 6 percent. The co-conspirator made hundreds of thousands of dollars from the trades.

Hariri, 38, of San Francisco, faces a maximum of 25 years in prison at his June 10 sentencing.

Rajaratnam is fighting inside trading charges.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...