CORRECTED - UPDATE 2-U.S. SEC sues Trivium in Galleon case

Mon Jan 10, 2011 2:42pm EST

(Corrects headline and 4th paragraph to make clear Market Street not named as a defendant)

* New civil charges stemming from Galleon hedge fund case

* Part of broad probe of insider trading at hedge funds (Adds names of managers charged in SEC civil case, bylines)

By Grant McCool and Matthew Goldstein

NEW YORK, Jan 10 (Reuters) - The U.S. Securities and Exchange Commission brought civil insider trading charges against the co-founder of a one-time $900 million hedge fund as part of the ongoing Galleon hedge fund probe.

Robert Feinblatt, who shut his Trivium Capital Management firm in late 2008, was charged with getting confidential tips from Galleon cooperating defendant Roomy Khan. Khan had worked as a consultant to Feinblatt, who started his fund after leaving SAC Capital in 2002.

The case was filed in U.S. District Court in New York. A voice mail message left for Feinblatt was not immediately returned.

An employee of the consulting firm Market Street, Shammara Hussein, was named as a defendant. Market Street was a consultant for Google Inc (GOOG.O), the SEC said. Trivium analyst Jeffrey Yokuty and Polycom Inc (PLCM.O) executive Sunil Bhalla were also charged.

The SEC complaint said the inside information was passed through Khan, a former Intel Corp (INTC.O) employee, who pleaded guilty to criminal charges in the Galleon case and is cooperating with prosecutors.

Galleon hedge fund founder Raj Rajaratnam has been free on bail after being charged criminally and civilly in October 2009. He pleaded not guilty and is scheduled to go on trial on Feb. 28. (Reporting by Jon Stempel, Grant McCool and Matthew Goldstein, editing by Maureen Bavdek and Andre Grenon)