On multiple occasions, Smith obtained inside information from an investment banker at a financial institution where he once worked. Rakoff.Īccording to the information, statements made during Smith’s guilty plea proceeding, and Smith’s testimony during the trial of Rajaratnam:įrom 2003 through 2009, Smith executed and caused others to execute securities trades based on inside information that he obtained from certain insiders who violated fiduciary and other duties of trust and confidence. He was sentenced today in Manhattan federal court by U.S. Smith pled guilty in January 2011 to one count of conspiracy to commit securities fraud and one count of securities fraud. At various times, both he and Rajaratnam traded on the inside information. Preet Bharara, the United States Attorney for the Southern District of New York, announced that Adam Smith, a former portfolio manager of the communications fund at Galleon Group (“Galleon”), was sentenced today to two years of probation and ordered to forfeit $105,300 for his participation in an insider trading scheme in which Smith provided material, non-public information (inside information) obtained from an investment banker at a financial institution and from other public company employees to Raj Rajaratnam, the head of Galleon.
