Last week, prosecutors said there may have been someone else informing Raj Rajaratnam in from inside Goldman Sachs.
Now there’s a report of who investigators are looking at.
According to the Wall Street Journal, a high profile Hong Kong based tech analyst Henry King is being investigated by authorities for passing information to Galleon Group, the hedge fund of now jailed money manager Raj Rajaratnam.
The Journal says the story came from sources close to the situation, and of course nobody, not the authorities and not Goldman, would comment on it. The firm told its Asia clients that King was on a leave of absence after taking a trip to the United States earlier this year.
And here’s why authorities think they’ve found their man (from the WSJ):
Mr. King’s research activities spotlight the flow, from Taiwan to U.S. investors, of information about the supply chain for personal-computer parts makers from Taiwan.
In recent years, technology investors have increasingly used snippets of information about the production of computer parts as an indication of how demand in the U.S. for computers might be shifting, in turn affecting the results of U.S. technology companies.
Galleon was one of King’s clients before Rajaratnam was charged, and the hedge fund had such a close relationship with Goldman that top execs were known to visit it. However, there is no proven connection between those visits and King.