Insider trading suspect on the run in Mumbai: FBI
New York: Deep Shah, an Indian-origin suspect in the largest ever hedge fund scam in the US is on the run and is believed to be in Mumbai, Federal authorities have said. Shah, 27, and Gautam Shankar, 35, were among the 14 new suspects charged on Thursday in the $53 million insider trading scam by the FBI. While Shah is a former analyst at the Moody’s investor service, Shankar who has already pleaded guilty is a former proprietary trader at Schottenfeld group in New York. According to Federal authorities, Shah gave insider information about Hilton group takeover by Blackstone group to one Roomy Khan, 51, who has previously worked with Intel and Galleon who then passed it over to main accused Raj Rajaratnam, who is of Sri Lankan origin. It is not clear at this point whether the US will request for the extradition of Shah, who is believed to be in Mumbai, or whether he can be tried in India. Two other Indians were charged in the fraud earlier along with Rajaratnam, Galleon group founder and one of America’s richest men. Rajiv Goel, director in strategic investments at Intel’s investment arm, and Anil Kumar, a director at global management-consulting firm McKinsey, both 51, were charged for fraud last month. Rajaratnam was slapped with 13 charges, four counts of conspiracy and eight counts of security fraud. Five out of the 20 charged, including Shankar, have pleaded guilty and a few are cooperating with the authorities. A trader at Schottenfeld who lives in Connecticut, Shankar was accused of trading tips from one Zvi Goffer and has pleaded guilty to securities fraud. He is also said to be guilty of passing on insider information on publicly traded companies. AGENCIES Raj Rajaratnam, main accused --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
