SEC Charges Another Tipper in Galleon Insider Trading Scheme
Sam Miri, a former Marvell Technology Group employee, tipped nonpublic financial information to Ali Far, enabling $680,000 in illicit hedge fund profits, and settled SEC charges by paying over $60,000 and accepting a five-year ban from serving as a public company officer or director.
Sam Miri, a former communications employee at Marvell Technology Group, violated Section 10(b) of the Securities Exchange Act and Rule 10b-5 by tipping Ali Far, a former Galleon portfolio manager, about Marvell’s upcoming earnings, profitability, and plans to appoint a permanent CFO in May 2008. Far used this insider information to direct Spherix Capital to buy 300,000 shares of Marvell stock, yielding approximately $680,000 in illicit profits after the stock rose over 20% following the earnings announcement. In exchange, Miri received $10,000 in quarterly payments and agreed to settle without admitting or denying guilt, paying $10,000 in disgorgement, $1,842.90 in prejudgment interest, a $50,000 penalty, and accepting a five-year bar from serving as an officer or director of a public company.
Sam Miri, a former communications employee at Marvell Technology Group, illegally disclosed nonpublic information about the company’s financial performance—including revenue, profitability, and plans to appoint a permanent CFO—to Ali Far, a former Galleon Management portfolio manager, in early 2008. Far used this insider information to direct his hedge fund, Spherix Capital, to purchase approximately 300,000 shares of Marvell stock ahead of the company’s May 29, 2008 earnings announcement, which triggered a more than 20% stock price increase and generated $680,000 in illicit profits. In return for the tips, Miri received four quarterly payments totaling $10,000. The SEC charged Miri with violations of Section 10(b) and Rule 10b-5, and he agreed to settle without admitting or denying the allegations. As part of the settlement, Miri paid $10,000 in disgorgement, $1,842.90 in prejudgment interest, and a $50,000 civil penalty, while also accepting a five-year ban from serving as an officer or director of any public company. The case is part of the broader Galleon insider trading investigation, which has now held 35 firms and individuals accountable, and remains active with ongoing enforcement efforts led by the SEC’s New York Regional Office in coordination with the U.S. Attorney’s Office and the FBI. The settlement is pending court approval.
Exhibits & Attached Documents (1)
Extracted insights
- $680K $680,000 $100K–$1M
- $60K $60,000 $10K–$100K
- $50K $50,000 $10K–$100K
- $10K $10,000 $10K–$100K
- $10K $10,000 $10K–$100K
- $2K $1,842 <$10K
- person ali far
- company far and spherix capital
- person galleon management
- person galleon scheme
- person marvell stock
- person sam miri
- agency sec case
- agency sec investigation
- agency Securities and Exchange Commission
- SEC charged Sam Miri for tipping nonpublic information in Raj Rajaratnam's insider trading scheme
- Sam Miri worked at Marvell Technology Group communications division
- Sam Miri tipped Ali Far with confidential information about Marvell's financial performance
- Ali Far was portfolio manager at Galleon Management
- Ali Far traded Marvell securities on behalf of hedge funds
- Far and Spherix Capital earned hundreds of thousands of dollars in illicit profits
- Ali Far arranged payments to Sam Miri totaling approximately $10,000
- Sam Miri agreed to pay $10,000 in disgorgement and $50,000 penalty
- Sam Miri agreed to be barred from serving as officer or director of public company for five years
- Sam Miri tipped Ali Far in May 2008 about Marvell's CFO announcement plans
- Sam Miri revealed Marvell's sales revenue, profitability, and future earnings projections
- Spherix Capital hedge funds purchased approximately 300,000 shares of Marvell common stock
- Far's hedge funds reaped approximately $680,000 in ill-gotten gains
- Marvell stock climbed more than 20 percent after May 29 announcement
- SEC charged Miri with violations of Section 10(b) of Securities Exchange Act of 1934 and Rule 10b-5
- Sam Miri agreed to pay $1,842.90 in prejudgment interest
- 35 firms and individuals held accountable for roles in Galleon scheme
- John Henderson, Diego Brucculeri, James D'Avino conducted SEC investigation
- Joseph Sansone and Sanjay Wadhwa supervised SEC case
The Securities and Exchange Commission today charged a former employee at a Silicon Valley-based semiconductor company for his role tipping nonpublic information used in connection with Raj Rajaratnam’s massive insider trading scheme. The SEC alleges that Sam Miri, who worked in the communications division at Marvell Technology Group, tipped confidential information about the company’s financial performance to former Galleon Management portfolio manager Ali Far. He used the nonpublic information provided by Miri to trade Marvell securities on behalf of hedge funds that he founded after leaving Galleon. Far and Spherix Capital, who were among those earlier charged by the SEC in the Galleon matter, earned hundreds of thousands of dollars in illicit profits based on Miri’s tips. In exchange for the illegal tips, Far arranged four quarterly payments to Miri totaling approximately $10,000. Miri, who lives in Palo Alto, Calif., has agreed to settle the SEC’s charges by paying more than $60,000 and being barred from serving as an officer or director of a public company. “Miri finds himself playing the role of defendant because he chose to violate his duty to protect his employer’s confidential information by selling it to a hedge fund manager in exchange for quarterly payments,” said Sanjay Wadhwa, senior associate director for enforcement in the SEC’s New York Regional Office. “A total of 35 firms and individuals have now been held accountable for their varying roles in the Galleon scheme.” According to the SEC’s complaint filed in federal court in Manhattan, Miri tipped Far in May 2008 with inside information about Marvell’s plans to announce a permanent chief financial officer after a string of interim chief financial officers. With an earnings announcement scheduled for later that month, Miri also revealed confidential information about Marvell’s sales revenue and profitability as well as projections of future earnings potential. In the days leading up to the announcement, Spherix Capital hedge funds purchased approximately 300,000 shares of Marvell common stock. When the stock climbed more than 20 percent after Marvell announced its quarterly financial results and new CFO on May 29, Far’s hedge funds reaped approximately $680,000 in ill-gotten gains. The SEC’s complaint charges Miri with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Miri agreed to pay $10,000 in disgorgement, $1,842.90 in prejudgment interest, and a $50,000 penalty. Miri also agreed to be barred from serving as an officer or director of a public company for five years. Without admitting or denying the charges, Miri agreed to be permanently enjoined from future violations of these provisions of the federal securities laws. The settlement is subject to court approval. The SEC’s investigation, which is continuing, has been conducted by John Henderson, Diego Brucculeri, and James D’Avino of the New York Regional Office. The case has been supervised by Joseph Sansone of the Market Abuse Unit and Sanjay Wadhwa. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation.
The Securities and Exchange Commission today charged a former employee at a Silicon Valley-based semiconductor company for his role tipping nonpublic information used in connection with Raj Rajaratnam’s massive insider trading scheme. The SEC alleges that Sam Miri, who worked in the communications division at Marvell Technology Group, tipped confidential information about the company’s financial performance to former Galleon Management portfolio manager Ali Far. He used the nonpublic information provided by Miri to trade Marvell securities on behalf of hedge funds that he founded after leaving Galleon. Far and Spherix Capital, who were among those earlier charged by the SEC in the Galleon matter, earned hundreds of thousands of dollars in illicit profits based on Miri’s tips. In exchange for the illegal tips, Far arranged four quarterly payments to Miri totaling approximately $10,000. Miri, who lives in Palo Alto, Calif., has agreed to settle the SEC’s charges by paying more than $60,000 and being barred from serving as an officer or director of a public company. “Miri finds himself playing the role of defendant because he chose to violate his duty to protect his employer’s confidential information by selling it to a hedge fund manager in exchange for quarterly payments,” said Sanjay Wadhwa, senior associate director for enforcement in the SEC’s New York Regional Office. “A total of 35 firms and individuals have now been held accountable for their varying roles in the Galleon scheme.” According to the SEC’s complaint filed in federal court in Manhattan, Miri tipped Far in May 2008 with inside information about Marvell’s plans to announce a permanent chief financial officer after a string of interim chief financial officers. With an earnings announcement scheduled for later that month, Miri also revealed confidential information about Marvell’s sales revenue and profitability as well as projections of future earnings potential. In the days leading up to the announcement, Spherix Capital hedge funds purchased approximately 300,000 shares of Marvell common stock. When the stock climbed more than 20 percent after Marvell announced its quarterly financial results and new CFO on May 29, Far’s hedge funds reaped approximately $680,000 in ill-gotten gains. The SEC’s complaint charges Miri with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Miri agreed to pay $10,000 in disgorgement, $1,842.90 in prejudgment interest, and a $50,000 penalty. Miri also agreed to be barred from serving as an officer or director of a public company for five years. Without admitting or denying the charges, Miri agreed to be permanently enjoined from future violations of these provisions of the federal securities laws. The settlement is subject to court approval. The SEC’s investigation, which is continuing, has been conducted by John Henderson, Diego Brucculeri, and James D’Avino of the New York Regional Office. The case has been supervised by Joseph Sansone of the Market Abuse Unit and Sanjay Wadhwa. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation.