New York (HedgeCo.Net) – Another tech employee at a Silicon Valley-based semiconductor company has been charged for his role tipping nonpublic information used in connection with Raj Rajaratnam’s massive insider trading scheme.
The SEC alleges that Sam Miri, who worked in the communications division at Marvell Technology Group, tipped confidential information about the company’s financial performance to former Galleon Management portfolio manager Ali Far. He used the nonpublic information provided by Miri to trade Marvell securities on behalf of hedge funds that he founded after leaving Galleon. Far and Spherix Capital, who were among those earlier charged by the SEC in the Galleon matter, earned hundreds of thousands of dollars in illicit profits based on Miri’s tips. In exchange for the illegal tips, Far arranged four quarterly payments to Miri totaling approximately $10,000.
Miri, who lives in Palo Alto, Calif., has agreed to settle the SEC’s charges by paying more than $60,000 and being barred from serving as an officer or director of a public company.
“Miri finds himself playing the role of defendant because he chose to violate his duty to protect his employer’s confidential information by selling it to a hedge fund manager in exchange for quarterly payments,” said Sanjay Wadhwa, senior associate director for enforcement in the SEC’s New York Regional Office. “A total of 35 firms and individuals have now been held accountable for their varying roles in the Galleon scheme.”