SEC Charges Another Tipper in Galleon Insider Trading Scheme

The SEC has charged Sam Miri, a former employee at Silicon Valley-based semiconductor company, Marvell Technology Group, for his role in disclosing nonpublic information used in connection with Raj Rajaratnam's massive insider trader scheme.

The SEC alleges that Miri tipped confidential information about the company's financial performance to former Galleon Management portfolio manager Ali Far, who used the information to trade Marvell securities on behalf of hedge funds he founded after leaving Galleon. According to the SEC, Far earned hundreds of thousands of dollars in illicit profits based on Miri's tips and, in exchange, arranged four quarterly payments to Miri totaling approximately $10,000.

Miri has agreed to settle the SEC's charges by paying over $60,000 and by being barred from serving as an officer or director of a public company.

See: SEC Complaint; SEC Press Release.Related news: SEC Charges Former Tech Company Executive for Role in Rajaratnam Insider Trading Case (September 20, 2013); SEC Obtains $13.9 Million Penalty against Rajat Gupta (July 17, 2013) SEC Litigation Release Regarding "Rengan" Rajaratnam Insider Trading Case (March 25, 2013); SEC Charges "Rengan" Rajaratnam with Insider Trading (March 21, 2013); SEC Obtains Final Judgment on Consent as to Raj Rajaratnam (December 27, 2012); SEC Charges Silicon Valley Executive for Role in Galleon Insider Trading Scheme (October 26, 2012).