Dedicated to Providing Insight Into the Enablement of Cloud Hosting Environments.

Cloud Hosting Journal

Subscribe to Cloud Hosting Journal: eMailAlertsEmail Alerts newslettersWeekly Newsletters
Get Cloud Hosting Journal: homepageHomepage mobileMobile rssRSS facebookFacebook twitterTwitter linkedinLinkedIn


Cloud Hosting Authors: Liz McMillan, Vaibhaw Pandey, Matt Brickey, Harry Trott, Yeshim Deniz

Related Topics: Security Journal, Economics for Investors

Article

Another Galleon Player Pleads Guilty

Mark Kurland pleaded guilty Wednesday to two counts of insider trading

Mark Kurland, the co-founder of New Castle Fund and Danielle Chiesi's boss - the aging beauty queen whose charms allegedly persuaded ex-IBM SVP Robert Moffat to tell her company secrets - pleaded guilty Wednesday to two counts of insider trading but has refused to rat Dani out and cooperate with the authorities. (Man, she must be good.)

Kurland's decision to waive indictment on conspiracy to commit securities fraud and move directly to a plea was taken to mean he was going to turn state's evidence and at least testify against Dani, having eavesdropped on a wiretapped conversation between her and Moffat about the restructuring of AMD. But no, he's going to play the gentleman.

The government's allegations say Kurland encouraged Dani to get inside information and then, like Galleon chief Raj Rajaratnam, traded on her tips. Apparently he's looking at something like three years in prison and disgorging $900,000. It's unclear how difficult Kurland's lack of cooperation will make it for the government to prove its case against Chiesi and Rajaratnam, both of whom have pleaded not guilty.

Moffat's lawyers, meanwhile, are trying to save him from indictment, but he's unwilling to cooperate with the government too.

Meanwhile, the federal judge who drew the SEC's civil suit against Rajaratnam said Monday that the agency could expand its charges against the hedge fund co-founder to include allegations that he paid ex-McKinsey & Co director Anil Kumar $1.75 million for inside information on companies such as AMD.

Kumar has already pleaded guilty to charges of securities fraud and conspiracy, confessing in the process to the payoffs.

The judge said next week he'll decide whether the SEC can use the government's 14,000 hours of wire taps in its case against Rajaratnam, Kumar, former IBM SVP Robert Moffat and Intel executive Rajiv Goel et al.

Rajaratnam claims the taps properly belong only in the government's criminal case.

The recording, made from 2004-2009, were given to Rajaratnam's lawyers as part of discovery and now they won't produce them for the SEC.

The SEC's case goes to trial August 2.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.