Former Galleon trader Adam Smith pleaded guilty today, Wednesday, to insider trading  - the latest admission of guilt in the government’s growing insider trading investigation.  Mr. Smith, 38, who faces up to 25 years,  admitted to using insider information from an investment banking contact, sharing that information with the others, including firm founder Raj Rajaratnam, and then destroying evidence following Mr. Rajaratnam’s arrest in late 2009.

    Timing of Crimes.   Mr. Smith allegedly received tips and passed them to others, including Mr. Rajaratnam, on a variety of acquisitions from 2003 to 2009 - from investment banking sources.  Mr. Smith also obtained earnings information from employees at public companies, then used the information to trade and passed it along to Mr. Rajaratnam.

Prosecutors noted that Mr. Smith, who started his own hedge fund following the arrest of Mr. Rajaratnam, destroyed computer records and documents in October and November 2009.   [NYT Dealbook, 1/26]