The investor relations firm at the centre of the Galleon insider scandal has said that no current employees are implicated in the scandal. Nonetheless, Google has suspended the firm.
Market Street Partners unexpectedly found itself at the heart of the insider trading scandal that has destroyed one of the biggest tech-focused hedge funds. According to the government, a Market Street employee leaked news of a Google earnings shortfall to someone who has been identified as Roomy Khan, who passed the information on to Raj Rajaratnam.
The firm is a small San Francisco based company that handles mostly tech clients. Google was its biggest client, by far. It was founded by two women, one of whom used to work for Goldman Sachs. Until yesterday, Google had said that it was still using Market Street. But, as we predicted, this didn’t last.
Neither Market Street nor the government has identified the source of the leak. But by denying that any current employee was the leak, Market Street has narrowed the search. Our investigation into the matter turned up a number of names of people who were employed at the firm during the summer of 2007, when the leak occurred, but subsequently left.
- Jon Avidor, now a law and business student at Northwestern and the Kellogg School of Management, worked at the firm as an analyst from January 2006 to February 2008, according to his LinkedIn page.
- Nate Wright, also now an MBA student at Kellogg, was at Market Street from August 2004 to August 2009.
- Kate Sidorovich was a vice president at Market Street from March 2004 to March 2008, and is now the the director of investor relations for eHealth.
- One person named Hannah Baker doesn’t list the date of her employment but describes herself as an analyst at the firm.
Of course, there may be other former employees not on LinkedIn, so this list is not exhaustive. And none of the people listed above has been accused of any wrong-doing in this case.