We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
Galleon trader guilty plea over 3Com insider dealing

Galleon trader guilty plea over 3Com insider dealing

Craig Drimal admits illegal transactions as jury deliberates fate of his former boss

Article comments

A former Galleon Group trader has pleaded guilty to illegally trading shares in 3Com, as a jury deliberates over the fate of his former boss, Raj Rajaratnam.

The trades were based on inside information, allegedly from lawyers involved in 3Com deals. They took place in 2007, before HP acquired 3Com in April last year for $2.7 billion.

Craig Drimal, 54, a former trader at the hedge fund, was charged in the federal investigation of alleged insider trading at the New York hedge fund. He pleaded guilty to conspiracy and five counts of securities fraud.

Drimal told a New York court that he and others at Galleon traded on inside information obtained from lawyers working on transactions involving 3Com and Axcan Pharma in 2007.

“At the time I did these trades, I believed my conduct was illegal and wrong, and I deeply regret these actions which has caused so much pain to my family and friends,” Drimal told the court.

Over 20 people in the Galleon investigation have so far pleaded guilty to charges of insider dealing, involving tech company shares including IBM, Intel and AMD.

Drimal is expected to be sentenced in September and has been told by the judge he faces between 70 and 87 months in prison, and a fine of up to $5 million.

The jury in the trial of the Galleon fund’s co-founder, Raj Rajaratnam, who is also accused of insider dealing, is currently considering its verdict. Yesterday it asked the judge to replay six recorded calls between Rajaratnam and former Intel executive Rajiv Goel.

Rajaratnam denies all charges brought and insists he traded on well-researched information.

Share:

Comments

Advertisement
Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.


ComputerworldUK Knowledge Vault

ComputerworldUK
Share
x
Open
* *