10th Guilty Plea In Galleon Insider Trading Case

Raj Rajaratnam galleon

NEW YORK (AP) — A former vice president of California chipmaker Atheros Communications has pleaded guilty to insider trading charges. Ali Hariri becomes the 10th person to plead out of the largest hedge fund insider trading case in U.S. history.

Hariri entered the plea Wednesday in Manhattan federal court. He faces up to 25 years in prison for securities fraud, and conspiracy to commit securities fraud. Sentencing is June 10.

Hariri was among 22 people arrested last fall. The case centered on alleged insider trading at the Galleon Group, a hedge fund run by Raj Rajaratnam, one of America’s richest men. Prosecutors say it produced tens of millions of dollars in illegal profits.

The San Francisco resident admitted feeding inside information about the wireless communications company where he worked to a friend who worked at a hedge fund.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.