By Bernard Vaughan
NEW YORK, Feb 11 (Reuters) - Former Galleon hedge fund
portfolio manager Ali Far was sentenced to a year of probation
on Monday, after pleading guilty and cooperating with
investigators in the Raj Rajaratnam insider-trading case.
The sentence was handed down by Judge Robert Patterson, who
also ordered Far to pay a $100,000 fine, do 100 days of
community service and cooperate with prosecutors on other
investigations during the time of his probation.
"While I can not change the past, I promise that I will do
what I can to make up for it," Far told the court before his
Far, who worked at Galleon from 1999 to 2007, started
cooperating with the government's sweeping insider trading probe
in April 2009.
He recorded calls with Galleon founder Rajaratnam at the
direction of the FBI, and prosecutors have said his cooperation
helped them obtain guilty pleas from defendants including Ali
Hariri, a former vice president with Atheros Communications, and
Adam Smith, a former colleague at Galleon.
Far, 52, was the "gentlemen" Rajaratnam referred to in a
conversation with former McKinsey & Co partner Anil Kumar
shortly before their arrest in October 2009, as he and Kumar sat
on deck chairs at a Miami beach.
"You know Anil, I'm told there's a gentleman who used to
work for me and he's now wearing a wire," Rajaratnam said
according to March 2011 testimony by Kumar, who also pleaded
Rajaratnam is serving an 11-year prison term following his
conviction for securities fraud and conspiracy charges in 2011.
Kumar, who testified for the government at Rajaratnam's trial,
was sentenced to two years probation.
Between 2003 and March 2009, Far traded on inside
information on companies including semiconductor developers
Broadcom Corp, Marvell Technology Group Ltd
and Atheros Communications, now owned by Qualcomm Inc,
prosecutors said. He pleaded guilty in 2009 to securities fraud
and wire fraud.
Far, who was born in Iran, co-founded the now-closed Spherix
Capital LLC hedge fund in 2008 with Richard Choo-Beng Lee, who
also pleaded guilty in the Galleon case. They paid more than $2
million to the U.S. Securities and Exchange Commission in
forfeitures, interest payments and a civil penalty to settle
insider trading charges, the government said.
As part of his plea agreement, Far has been barred from
associating with any investment adviser for the rest of his
The case is United States of America v. Ali Far, U.S.
District Court in Manhattan, No. 09-01009.
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