Oct. 16--Here is the text of the Securities Exchange Commission press release on charges in an insider trading scheme involving a billionair hedge fund manager and Intel Capital and McKinsey & Company executives from Los Altos and Saratoga.

Washington, D.C., Oct. 16, 2009 -- The Securities and Exchange Commission today charged billionaire Raj Rajaratnam and his New York-based hedge fund advisory firm Galleon Management LP with engaging in a massive insider trading scheme that generated more than $25 million in illicit gains. The SEC also charged six others involved in the scheme, including senior executives at major companies IBM, Intel and McKinsey & Company.

The SEC's complaint, filed in federal court in Manhattan, alleges that Rajaratnam tapped into his network of friends and close business associates to obtain insider tips and confidential information about corporate earnings or takeover activity at several companies, including Google, Hilton and Sun Microsystems. He then used the non-public information to illegally trade on behalf of Galleon.

"This complaint describes a web of fraud that has been unraveled," said SEC Chairman Mary L. Schapiro.

"What we have uncovered in the trading activities of Raj Rajaratnam is that the secret of his success is not genius trading strategies. He is not the astute study of company fundamentals or marketplace trends that he is widely thought to be. Raj Rajaratnam is not a master of the

universe, but rather a master of the rolodex," said Robert Khuzami, Director of the SEC's Division of Enforcement. "He cultivated a network of high-ranking corporate executives and insiders, and then tapped into this ring to obtain confidential details about quarterly earnings and takeover activity."

In addition to Rajaratnam and Galleon, the SEC's complaint cHere is the text of the Securities Exchange Commission press release on charges in an insider trading scheme involving a billionair hedge fund manager and Intel Capital and McKinsey & Company executives from Los Altos and Saratoga.harges:

-- Danielle Chiesi of New York, N.Y. -- a portfolio manager at New Castle Funds.

-- Rajiv Goel of Los Altos, Calif. -- a managing director at Intel Capital, an Intel subsidiary.

-- Anil Kumar of Saratoga, Calif. -- a director at McKinsey & Company.

-- Mark Kurland of Mount Kisco, N.Y. -- a Senior Managing Director and General Partner at New Castle.

-- Robert Moffat of Ridgefield, Conn. -- a senior vice president at IBM.