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The Legal Consequences Of Insider Trading

On Behalf of | Jul 18, 2016 | White Collar Crimes

From outside appearances, Roomy Khan was a role model for the American dream. She grew up in a middle class family in India but moved to the United States to attend Columbia University. From there, she landed a series of highly coveted positions at IBM and Intel and eventually worked her way up to Wall Street, becoming highly successful. At one point, she had over $50 million in her bank account. Unfortunately for her, she earned most of the money through illegal insider trading.

Khan was recruited by her Wall Street boss Raj Rajaratnam, the founder of Galleon Group. It was to this company that she passed Intel insider information. After a while, she used the contacts and resources she gained at this job to go into business for herself. She was caught by the FBI eventually, but decided to work with them to try and bring down Rajaratnam. Because of her assistance, she was only fined a quarter of a million dollars and served one year of house arrest. Rajaratnam escaped charges as the FBI could not get enough evidence.

While she stayed clean for a while, she eventually traipsed back into the hedge fund world when technology stocks crashed in 2000. However, she could not avoid the eyes of the FBI, who caught her once again in 2007. She cooperated again, and this time her help resulted in the arrest of Rajaratnam, who was sentenced to 11 years in jail. Khan only went to jail for one year, but it had devastating effects on her family.

If you ever find yourself facing these kind of charges, keep in mind that an experienced criminal defense attorney with a background in white collar crime is the best person to represent you.

Source

http://www.accountingtoday.com/blogs/debits-credits/news/galleon-insider-trading-witness-shares-details-of-fraud-78476-1.html?utm_medium=email&ET=webcpa:e6999812:5038172a:&utm_source=newsletter&utm_campaign=daily-jun%2023%202016&st=email&eid=932ce464673b3b81032e110f3abf58c5

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