Securities Charge

Sri Lankan President Maithripala Sirisena (L) and Sri Lankan Prime Minister Ranil Wickremasinghe gesture as Sri Lankan Finance Minister Ravi Karunanayake (unseen) presents a supplementary budget to parliament, marking the first economic policy statement of the new government which came to power earlier in the month in Colombo on January 29, 2015. Sri Lanka's new government announced hefty taxes on top companies in a bid to raise revenue, accusing the previous regime of fudging the figures and leaving the economy in a "sad state". AFP PHOTO / Ishara S. KODIKARA (Photo credit should read Ishara S.KODIKARA/AFP/Getty Images)

Oct 16, 2009 (LBO) – Galleon group chief Raj Rajaratnam, a top equity markets investor in Sri Lanka, and five others have been charged in a 20 million US dollar insider dealing case in the United States.

The complaint alleged that profits were made on trading in Google, Polycom, People Suppport, Clearwire and Advanced Micro Devices.

Others charged included Rajiv Goel, an executive at Intel’s investment arm, Anil Kumar from, McKinsey & Co., a management-consulting firm, Danielle Chiesi and Mark Kurland of New Castle Partners and Robert Moffat, a senior vice president at IBM.

The US Securities and Exchange Commission had brought the securities fraud charges with the aid of a co-operating witness identified as ‘Tipper A’ backed up by wiretaps court documents showed.

The prosecutors alleged that an insider trading ring had been operating where millions of dollars had been made by buying into stocks and call options ahead of higher than expected profits or shorting stocks or trading put options when earnings were to fall.

Prosecutors alleged that Rajaratnam and several Galleon funds as well as ‘Tipper A’ and others had used non-public insider information and also passed them around to m