for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Company News

NY court papers name Akamai source in Galleon case

* Ex-marketing director named as “Akamai Source”

* Tipped Galleon case defendant Chiesi - court papers

* Kieran Taylor named in response to Rajaratnam lawyers

NEW YORK, Jan 10 (Reuters) - A former senior marketing director at Akamai Technologies Inc AKAM.O, Kieran Taylor, was named in court documents as the source who allegedly provided inside information to a trader charged in the Galleon hedge fund case.

Taylor’s name was provided by the U.S. Securities and Exchange Commission in response to a series of questions submitted by lawyers for Galleon founder Raj Rajaratnam.

In the Jan. 5 filing by Rajaratnam’s lawyers in U.S. District Court in New York, the SEC identified Taylor as the “Akamai Source” of co-defendant Danielle Chiesi, a former trader at New Castle Funds LLC. The Galleon co-founder’s lawyers included the SEC’s responses as an exhibit.

Attempts to reach Taylor for a comment or to locate his legal counsel were unsuccessful. Taylor was a onetime senior director of product marketing at Akamai, which is based in Cambridge, Massachusetts.

An Akamai spokesman could not immediately comment. Up until now, the identity of the Akamai tipper had been a mystery.

The SEC civil complaint of October 2009 said “an Akamai Technologies executive tipped Chiesi to material nonpublic information about Akamai’s Q2 2008 earnings.” Regulators described the Akamai tipper as a “family friend of Chiesi’s.”

It said she shared the information with her boss at New Castle, Mark Kurland, and with Galleon hedge fund founder Raj Rajaratnam. Chiesi and the two men were accused of trading on the confidential information.

Chiesi has pleaded not guilty to conspiracy and securities fraud charges. She is scheduled to go on trial in April. The FBI arrested her and Rajaratnam in October 2009. Rajaratnam has also pleaded not guilty and his trial is scheduled to start next month.

The SEC brought civil charges against both of them and more than a score of other individuals and companies, including Kurland and New Castle. Kurland pleaded guilty and is serving a 27-month prison sentence.

The SEC announced new charges in the case on Monday, extending the allegations to include Trivium Capital Management LLC and its co-founder Robert Feinblatt and three other people. [ID:nN10284910]

When the FBI arrested Rajaratnam and Chiesi, U.S. prosecutors described the case as the biggest probe of hedge funds in the United States ever. Among the spin-offs of the case are investigations of so-called expert network firms who provide tips to hedge funds.

The same Jan. 5 court document shows that the Advanced Micro Devices AMD.N former CEO and chairman referred to in the SEC civil complaint in October 2009 was Hector Ruiz.

Chiesi and Ruiz allegedly shared confidential information. Ruiz, whose name has surfaced previously in court documents, has not made any public comment. He has not been charged in either the criminal case or the SEC matter.

The case is SEC v Galleon Management LP et al, U.S. District Court for the Southern District of New York, No. 09-08811 (Reporting by Grant McCool and Matthew Goldstein; Editing by Gary Hill)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up