The Securities and Exchange Commission formally charged billionaire Raj Rajaratnam and his New York-based hedge fund advisory firm Galleon Management LP with engaging in a massive insider trading scheme. Charges were also brought against senior executives at major companies IBM, Intel and McKinsey & Company.
Rajiv Goel, a managing director at Intel Capital, allegedly provided inside information to Rajaratnam about certain Intel quarterly earnings and a pending joint venture concerning Clearwire Corp., in which Intel had invested. One of the insider tips reportedly disclosed Intel’s plans to invest $500 million in the Clearwire venture.
http://www.sec.gov
