Wednesday, January 6, 2010

Galleon Watch – Another guilty plea linked to new charges

As I noted in earlier posts on the Galleon insider trading scandal, there was speculation that some of the defendants who have not yet been indicted were trying to cut deals with the prosecution. We now have signs that this is true in at least one case:

On December 31st, the New York Times reported that Anil Kumar (former McKinsey director) agreed to waive indictment and is expected to plead guilty.

This week, the New York Times is reporting that additional charges will be brought against Raj Rajaratnam, Galleon founder. These new charges are specifically related to AMD (Advanced Micro Devices), the link between Kumar and Rajaratnam.

It looks like the Feds are dealing with the little guys to beef up the sentence against the big fish. I am watching closely as the clock runs down to Bob Moffat’s January 15th indictment date. Could there be a deal there too? Stay tuned…

No comments: