Roomy Khan’s tips were not limited to Raj Rajaratnam.
Khan is the central witness, initially known as “CW” or “Tipper A,” in the case against the Galleon founder, but she told the judge that that she provided inside information to several people at hedge funds.
A transcript of her October 19 guilty plea, which was previously sealed but made public yesterday, indicates Khan also admitted to deleting what she called “an incriminating email” sent to her by a co-conspirator, even after she was cooperating with the government.
Khan’s guilty plea does not name names of her co-conspirators nor does it say who she tipped:
Between 2004 and November 2007, I along with several co-conspirators engaged in a conspiracy to commit securities fraud,” Ms. Khan said. “I used inside information provided to me by co-conspirators who worked for publicly traded companies and investor relations companies who had access to confidential information on particular companies and used it to make profitable trades.
“I provided the information to several co-conspirators who worked for various hedge funds, who also traded on the inside information for profit.
Of course, the other complaints in the insider trading busts indicate that her co-conspirators include at least Raj Rajaratnam and former Moody’s analyst Deep Shah. For example, as DealBook points out, Khan told the judge that she purchased securities in anticipation of a merger announcement in July 2007. The announcement of Blackstone’s acquisition of Hilton came at that time and Shah faces criminal charges for allegedly tipping a witness for cash payment.
Prosecutors say Khan’s take-home from her alleged insider trading was $1.6 million.
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