Roomy Khan, widely believed to be the “cooperating witness” in the Raj Rajaratnam insider trading complaint, was convicted of wire fraud in 2001 for giving Galleon non-public documents.
In 1998, Khan was working for Intel and faxed confidential information to an unidentified Galleon employee. Khan worked at Galleon for a period after the Intel incident, Deal Book reports.
Khan approached Rajaratnam about returning to Galleon in 2005, but he did not rehire her. The complaint alleges Khan provided insider information to Rajaratnam in 2006 and 2007.
Bloomberg: The information, requested by a unidentified representative of Galleon Management Inc., was about sales at Intel, Khan’s employer at the time, according to a Feb. 28, 2001, criminal complaint in San Jose, California, federal court. In March 1998, Khan faxed Galleon “Backlog and Billing Reports,” product pricing and sales data on Intel microprocessors for the first and second quarters of that year, according to the filing…
Khan pleaded guilty in April 2001 to one count of wire fraud and was sentenced the next year to six months home detention, fined $30,000 and ordered to pay $120,000 restitution, said Joseph Schadler, a spokesman for the Federal Bureau of Investigation. The case was first reported by the San Jose Mercury News.
Khan was outed as the cooperating witness on Wednesday, when it was revealed that she and her husband had been sued by a housekeeper who claimed she did not pay them. That lawsuit was settled, DealBook noted, after a judge stated the couple appeared to have fabricated “a significant piece of evidence.”
The Khans were also sued by Deutsche Bank for for failing ot pay on a promisory note.
Though the complaint appears to indicate that much of the evidentiary focus will be on the recordings obtained via wiretaps, Khan’s credibility will obviously be at issue. Convictions for crimes are generally admissible to challenge the witnesses “character for truthfulness” if the underlying crime involved an act of dishonesty.
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