Late last night, the FBI and SEC charged Galleon Group hedge fund founder Raj Rajaratnam with trading Google stock based on insider information.
No Google employees have been been charged, however.
Basically what happened is Google hired a firm called Market Street Partners to help with their earnings calls.
The crime in question occured when, before Google announced its Q2 earnings on June 30, 2007, a Market Street employee told a Galleon Group employee that Google was going to announce earnings below market expectations.
Unfortunatly for that Market Street employee, the Galleon Group employee is now one of the FBI’s co-operating witnesses. Busted!