More charges relating to the insider trading scandal were anticipated today and those predictions have panned out.
The co-founder of hedge fund Trivium Capital Management and an analyst were charged today for their role in the Galleon insider trading scandal.
Robert Feinblatt and analyst Jeffrey Yokuty are accused by the SEC of trading on material non-public information about Polycom, Hilton, Google and Kronos.
Remember, the former Galleon worker who ratted out Galleon chief Raj Rajaratnam, Roomy Khan, worked for Trivium.
A senior executive at Polycom called Sunil Bhalla, as well a a woman called Shammara Hussain, who did work for Google as an employee of investor relations consulting firm, Market Street Partners, were charged too.
The SEC says that these tips resulted in $15 million worth of illegal profits.
Bhalla tipped Khan to inside information about Polycom’s 2005 fourth quarter earnings, and Khan traded on that information and tipped others. The tippees included Feinblatt and Yokuty, who traded on behalf of Trivium based on the information. Bhalla also tipped Khan with inside information about Polycom’s 2006 first quarter earnings. Khan traded on the information and tipped Rajaratnam, who traded on behalf of Galleon based on the inside information.
Hussain also allegedly tipped Khan and others about Google’s 2007 second quarter earnings, which Khan then traded on. She also told Feinblatt and Yokuty about the earnings, who also then traded on it.
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