SEC Charges Former Hedge Fund Trader with Insider Trading
SEC Litigation Release LR-21826
January 26, 2011
The SEC announced the filing of civil insider trading charges against a former Galleon trader for his alleged trading ahead of certain acquisitions. The complaint alleges that the insider information came from former attorneys at Ropes Grey, who tipped information to a proprietary trader at a broker-dealer in exchange for kickbacks, and that the information was then tipped from the proprietary trader to Galleon. In related charges, the Galleon trader pled guilty to criminal charges relating to the insider trading scheme.
Exchange Act § 10(b)
Exchange Act Rule 10b-5