TABLE 1: Central Players in the Galleon Information Network

Player and employer

Raj Rajaratnam Galleon
Danielle Chiesi New Castle/Bear Stearns
Roomy Khan Intel, Galleon
Shared insider
information about
IBM, Sun Microsystems, and AMD
Intel, Hilton, Google, Kronos
Anil Kumar McKinsey & Co.
AMD
Rajiv Goel Intel
Rajat K. Gupta
Goldman Sachs
O Cengage Learning
Adam Smith Galleon
Michael Cardillo Galleon
Zvi Goffer, a.k.a. the "Octopussy" Schottenfeld Group, Galleon
Intel
Goldman Sachs, Procter & Gamble, McKinsey
Galleon, ATI, AMD
Charges/Convictions
At the center of the insider trading network; pled not guilty to 14 charges of
insider trading and fraud; convicted on all 14 counts, sentenced to 11 years in
prison, and ordered to pay over $158 million in criminal and civil penalties
Pled guilty to charges of securities fraud; sentenced to 30 months in prison, two
years of supervised release, and 250 hours of community service
Pled guilty to charges of securities fraud,
conspiracy to commit securities fraud, obstruction of justice, and agreed to the
government's request to use wiretaps; sentenced to one year in prison and ordered
to forfeit $1.5 million
Pled guilty to passing inside information to Rajaratnam in exchange for $1.75
million; sentenced to two years of probation
Pled guilty to passing inside information; sentenced to two years of probation
Pled not guilty to passing insider tips to Rajaratnam; convicted and sentenced to
two years in prison and a $5 million fine
Pled guilty to giving inside information directly to Rajaratnam over a six-year
period; sentenced to two years of probation
Axcan Pharma, Procter & Pled guilty to receiving tips indirectly from Gamble
Hilton, several others
Rajaratnam; allegedly possessed evidence about Rajaratnam's trades based on insider
information: sentenced to three years of probation
Had a reputation for having multiple sources of inside information; allegedly paid
others for tips and gave them prepaid mobile phones to avoid detection; pled not
guilty to 14 counts of conspiracy and securities fraud; convicted on all 14 counts
and sentenced to 10 years in prison

ARREST AND TRIAL

In October 2009, Raj Rajaratnam was arrested on 14 charges of securities and wire
fraud. At the same time, the SEC filed civil insider trading charges against him.
Rajaratnam was released on a $100 million bond and immediately hired several top
defense attorneys and public relations specialists. His criminal trial began in
March 2011.
The laws on insider trading are vague and often make it difficult to convict white-
collar crim- inals. Prosecutors had to prove Rajaratnam not only traded on
information he knew was confiden- tial but also that the information was important
enough to affect the price of a company's stock. The government's main evidence
consisted of 45 recorded phone calls between individuals suspected of insider
trading, including six witnesses who had already pled guilty and were aiding
federal investi- gators. In many of these phone calls, Raj Rajaratnam discussed
confidential information with inves- tors and insiders before the information was
released to the public. In one recording, Rajaratnam told employees to cover up
evidence of insider trading. Another recording suggests Rajaratnam