Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Monday, January 10, 2011

SEC Expands Insider Trading Allegations Relating to Galleon

Today the SEC filed a civil injunctive action in the United States District Court for the Southern District of New York alleging that Robert Feinblatt – a co-founder and principal of New York-based hedge fund investment adviser Trivium Capital Management LLC – and Trivium analyst Jeffrey Yokuty engaged in insider trading in the securities of Polycom, Hilton, Google and Kronos. The complaint charges Trivium with insider trading as well. The SEC further alleges that Polycom senior executive Sunil Bhalla and Shammara Hussain, an employee at investor relations consulting firm Market Street Partners that did work for Google, tipped the inside information that enabled the insider trading by Feinblatt and Yokuty on behalf of Trivium’s hedge funds for illicit profits of more than $15 million. The complaint filed today relates to pending enforcement actions, SEC v. Galleon Management, LP, et al., 09-CV-8811 (S.D.N.Y.) (JSR) and SEC v. Hardin, 10-CV-8600 (S.D.N.Y.) (JSR).

The SEC has now charged 27 defendants in its Galleon-related enforcement actions that have alleged widespread and repeated insider trading at numerous hedge funds including Galleon – a multi-billion dollar New York hedge fund complex founded and controlled by Raj Rajaratnam – and by other professional traders and corporate insiders in the securities of 14 companies generating illicit profits totaling approximately $69 million.

http://lawprofessors.typepad.com/securities/2011/01/sec-expands-insider-trading-allegations-relating-to-galleon.html

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