RPT-Tiny IR firm key to big trade in insider scandal

(Repeats story issued Oct. 19)

* Market Street little known outside Silicon Valley

* Firm employs 7 people, according to LinkedIn profile

* Google, Omniture, Netsuite among its clients

By Anupreeta Das and Clare Baldwin

NEW YORK/SAN FRANCISCO, Oct 19 (Reuters) - The tiny investor relations firm whose name has surfaced in the hedge fund insider trading scandal appears to have provided the tip that brought Galleon Group its most profitable trade, and is now also sparking the most questions.

Prosecutors have alleged that before Google Inc (GOOG.O) announced its second-quarter earnings in July 2007, a tipster told Galleon the Internet giant would announce earnings below market expectations, based on information received from an unidentified Market Street Partners employee.

Based on the tip, Galleon purchased about 1,000 put options in Google in July 2007, and shorted about 25,000 shares of the stock. The trade brought the hedge fund some $9 million in profits.

Last Friday, federal investigators brought criminal charges against Galleon founder Raj Rajaratnam and five others in what is the largest hedge fund insider trading case in history.

Authorities are poised to bring new cases, including against other financial professionals involved in insider trading, a person familiar with the matter told Reuters on Monday. [nN19480461]

"The Market Street employee provided the material, nonpublic information ... as part of his/her efforts to find hedge funds or other persons or entities willing to pay him/her for inside information in the future," according to the complaint by the U.S. Federal Bureau of Investigation.

Google is by far the biggest of about 60 companies listed on Market Street's website. A Google spokesman declined to comment on Market Street.

LITTLE KNOWN FIRM

Few public relations and investor relations firms outside Silicon Valley said they were familiar with the firm, whose office is in downtown San Francisco.

Market Street, which lists seven employees on its LinkedIn business profile, occupies the third floor of a three-storey brick building.

Employees at the neighboring offices described Market Street as being quiet and small, with employees preferring to take the stairs rather than the elevator. The median age is 32, according to LinkedIn data.