(Source: San Jose Mercury News)

By Pete Carey, San Jose Mercury News, Calif.
Nov. 5--Federal prosecutors in New York announced new charges against 14
people in the Galleon insider trading case, including an executive at Atheros
Communications in San Jose and five people who already have pleaded guilty in
the case, including three from Silicon Valley.
None of them could be reached for comment.
Prosecutors said they have received guilty pleas from Roomy Khan, 51, a
stock trader who lived in Atherton but now lives in Fort Lauderdale, Fla., and
who is widely believed to be their key informant in the case; and Ali Far, 48,
of Saratoga and Richard Choo-Beng Lee, 53, of San Jose, who ran the Spherix
hedge fund in San Jose. Spherix shut down earlier this year.
Ali Hariri, 38, of San Francisco, an Atheros executive, was accused of
providing inside information about Atheros to a confidential witness who used
it to buy hundreds of thousands of shares of Atheros stock. Hariri is a vice
president of broadband carrier networking at Atheros, which makes
semiconductors for the wireless industry.
Already charged with securities fraud and conspiracy in the case are
Galleon Group of hedge funds co-founder Raj Rajaratnam, one of the richest men
in America; Intel executive Rajiv Goel, McKinsey consultant Anil Kumar; New
Castle hedge fund officers Mark Kurland and Danielle Chiesi, and IBM executive
Mark Kurland. All have denied the charges.
Many of the 14 named in the charges announced by prosecutors Thursday
were Manhattan area traders. Two are lawyers and one is a former Moody's
Investors Service employee who is still at large.
A press release contained details of the charges against Khan, Far and
Lee involving unnamed tech companies and hedge funds.
Khan pleaded guilty Oct 19 to conspiracy and securities fraud and
obstruction of justice. The government said that from 2006 through November
2007 she conspired with a technology company executive in California; an
analyst at a credit ratings agency in New York; an investor relations firm in
California; the managers of two hedge funds in New York; the president and
principal portfolio manager of a hedge fund in California, and the managing
director of a hedge fund in New York. She made $1.6 million on her trades.
Prosecutors said Khan paid some of her sources of inside information with
other inside tips on stocks, and with cash and by executing trades in their
brokerage accounts. She also admitted deleting incriminating e-mail.
Lee and Far, who founded Spherix, pleaded guilty to securities fraud and
wire fraud.