The Securities and Exchange Commission has charged a former employee at Silicon Valley-based semiconductor company Marvell Technology Group for his involvement in an insider trading scheme operated by convicted hedge fund manager Raj Rajaratnam.
According to a statement released by the SEC, Sam Miri, who did not deny or admit to the charges, has agreed to pay more an approximate $60,000 settlement. He also agreed to be barred from serving as an officer or director of a public company for five years.
The settlement is subject to court approval.
Miri allegedly disclosed confidential information regarding Marvell to former Galleon Management portfolio manager Ali Far, who used the knowledge to trade Marvell securities after he left Galleon on behalf of Spherix Capital. Far, who pleaded guilty to insider charges in 2009, has been a chief witness in the Galleon Group insider trading case.
Galleon founder Rajaratnam was convicted in 2011 on 14 counts of insider trading and fraud in one of the biggest insider trading cases brought on by the U.S. government.