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Articles Tagged with Galleon

SEC Charges Chinese Citizens Over Alleged $29M Insider Trading Tied to Comcast-DreamWorks Acquisition

Published on: February 28, 2017 | by Shepherd Smith Edwards & Kantas, LLP

The US Securities and Exchange Commission is charging the partner of a Hong Kong-based private equity firm with securities fraud. The regulator claims that Shaohua (Michael) Yin of Summitview Capital Management Ltd. obtained over $56M of DreamWorks Animation SKG stock by using the US brokerage accounts of five Chinese nationals, including his parents.

When DreamWork’s stock price went up 47.3% after news that Comcast was acquiring it went public, the five accounts made $29M from the DreamWorks trades.

The SEC claims that Yin tried to conceal that he was in charge of the five accounts, which had addresses in Palo Alto and Beijing, but the regulator was still able to identify him as the one behind the suspect trading. Prior to becoming a partner at Summitview Capital, Yin worked for UBS (UBS) and private equity firm Warburg Pincus Asia LLC.

Rajaratnam Brother Settles Insider Trading Charges Involving Hedge Fund Advisory Firm Galleon Management

Published on: October 23, 2014 | by Shepherd Smith Edwards & Kantas, LLP

Rajarengan “Rengan” Rajaratnam, the brother of Raj Rajaratnam, has consented to pay over $840,000 to settle insider trading charges filed, against him by the U.S. Securities and Exchange Commission. Rengan, who has not admitted to or denied wrongding, also has agreed to an industry bar. A court must still approve the settlement.

Rengan was a portfolio manager at Galleon. He also co-founded Sedna Capital Management, which is another hedge fund advisory firm. Raj was convicted of insider trading in 2011.

It was in 2013 that the SEC filed charges against him for his involvement in the insider trading scam conducted by his brother Raj and Galleon Management.