Fund manager in Galleon probe names Marvell worker

Wed Nov 11, 2009 8:27pm GMT
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* Ali Far says got tips in exchange for cash payments

* Far says Marvell's Sam Miri is involved-source

* Marvell, Miri not available for comment

By Alexei Oreskovic and Jonathan Stempel

SAN FRANCISCO/NEW YORK, Nov 11 (Reuters) - A top government witness in the Galleon Group insider trading case has admitted to paying an official at a publicly traded technology company in exchange for inside information.

Ali Far, co-founder of the hedge fund Spherix Capital LLC, revealed the payments to an employee at Marvell Technology Group Ltd (MRVL.O: Quote, Profile, Research), according to court records and a person familiar with the matter, in what has become the largest hedge fund insider trading case in U.S. history.

Far made the the disclosure in an Oct. 19 hearing, a transcript of which was made public this week.

His disclosure appears to represent the first time a technology official was implicated in the Galleon case for allegedly receiving money in exchange for providing tips.

Some 20 defendants including Raj Rajaratnam, Galleon's billionaire founder, face criminal charges, civil charges or both in the case. Prosecutors have identified $40 million of illegal profits, while the U.S. Securities and Exchange Commission has found $53 million in its civil investigation.  Continued...

 
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