US names ISB director in insider trading scam
The Federal Bureau of Investigation (FBI) has charged 14 people, including two Indians and the Wall Street professionals, in the $53 million insider trading scam, the largest ever such case in the United States.
The latest action brings the number of people who have been charged in the case to 20, including four Indians.
The scam came to light last month with the arrest of the Sri Lankan Tamil-origin billionaire, Mr Raj Rajaratnam, the founder of the Galleon Group and hedge fund operator, and five others, two of whom were Indians. Mr Deep Shah, a former analyst at the Moody’s Investor Service, and Mr Gautham Shankar, a former proprietary trader at Schottenfeld Group in New York, were charged on Thursday. Mr Shankar has pleaded guilty, while Mr Shah is still at large.
McKinsey partner and ISB director, Mr Anil Kumar, and Mr Rajiv Goel (both 51) are the two other Indians who were arrested last month for allegedly committing the fraud.
The US attorney, Mr Preet Bharara and New York’s assistant FBI director, Mr Joseph Demarest, on Friday said that the accused took part in the insider trading that “generated more than $20 million in illegal profits.”
The people charged included the hedge fund managers and trading firm executives, lawyers and corporate insiders, the prosecutor and FBI officer said in a statement.
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