With yesterday's Final Judgment against Deep Shah, the SEC's insider trading case against Galleon Management, LP, et al, has largely run its course and the SEC has concluded its cases against most of the significant players in this insider trading ring.  The SEC now provides this comprehensive recap:  

Deep Shah, former Moody’s lodging industry analyst.  U.S. District Jed Rakoff, for the Southern District of New York, entered a Final Judgment by Default and Shah, who is believed to be living in India.  Shah is held liable for over $34.5 million, that consists of:  disgorgement ($8.2mn  - Shah’s ill-gotten gains and those of his tippees), prejudgment interest ($1.8mn), civil penalty ($24.6mn).

The SEC recalls that Shah allegedly provided material, nonpublic information about the 2007 acquisitions of Hilton Hotels and Kronos Inc. to individual investor Roomy Khan, who passed the information to others.  All tippees traded on the information, then paid Shah in cash for his tips.

Daniele Chiesi, ex-consultant/portfolio manager at New Castle Funds.  Settled SEC charges by agreeing to pay $541K in disgorgement and prejudgment interest.

David Plate, prop trader at Schottenfeld Group.   Settled SEC charges by agreeing to pay $54K in disgorgement and prejudgment interest, and to cooperate with SEC investigations.  Court will later determine issues relating to a civil penalty.

Gautham Shankar, prop trader at Schottenfeld Group.  Settled SEC charges by agreeing to pay $277K in disgorgement and prejudgment interest, and to cooperate with SEC investigations.  Court will later determine issues relating to a civil penalty.

Ali Hariri, Atheros Communications executive. Settled SEC charges by agreeing to be barred from acting as an officer or director of any public company, and to pay $3K in disgorgement and prejudgment interest, and to cooperate with SEC investigations.

Robert Moffat, SVP and Group Executive of IBM’s Systems and Technology Group.  Settled SEC charges by agreeing to be barred from acting as an officer or director of any public company.

Mark Kurland, CEO of New Castle Funds. Settled SEC charges by agreeing to pay $4.4Mn in disgorgement and prejudgment interest, and to cooperate with SEC investigations.  Court will later determine issues relating to a civil penalty.

The SEC dismissed its claims against New Castle, which no longer is operating as an investment advisor and has withdrawn its registration as an investment advisor.  New Castle has agreed to cooperate with the Commission’s staff and agreed not to engage in further operations.

Rajiv Goel, ex-MD in treasury group of Intel Corp., and Director of Strategic Investments at Intel Capital.  Settled SEC charges by agreeing to pay $254K in disgorgement and prejudgment interest.  Court will later determine issues relating to a civil penalty.  Goel also is barred from acting as an officer or director of any public company and has agreed to cooperate with SEC investigations.

Khan, individual investor who had been employed at Intel in the late 1990s, and subsequently employed at Galleon.  Settled SEC charges by agreeing to pay $1.9Mn in disgorgement and prejudgment interest, and to cooperate with SEC investigations.  Court will later determine issues relating to a civil penalty.

Anil Kumar, former director at McKinsey & Co.  Settled SEC charges by agreeing to pay $2.8Mn in disgorgement and prejudgment interest, and to cooperate with SEC investigations.  Court will later determine issues relating to a civil penalty.

SEC entered into a settlement with Schottenfeld Group, a registered broker-dealer, by which Schottenfeld agreed to pay $763K in disgorgement, prejudgment interest, and a civil penalty, to cooperate with SEC investigations, to implement enhanced policies and procedures to prevent future securities laws violations, and to retain an independent consultant to review its pols and procedures.

Choo Beng Lee and Ali T. Far, Managing Nembers of Far & Lee LLC.  In addition, Lee was president and Far a managing member of Spherix Capital LLC, an unregistered hedge fund adviser based.  Settled SEC charges by agreeing to pay $2.1Mn in disgorgement, prejudgment interest, and a civil penalty, and they cooperated with SEC investigations.

SEC dismissed its claims against Far & Lee and Spherix, which are now defunct or nearly so, in exchange for their agreement to cooperate and cease doing business.

For further details, go to:   [SEC Litigation Release 22071, 8/24/11]