Sunday, November 7, 2010

Hariri Sentenced to 18 Month in Jail for Insider Trading

Ali Hariri, a former executive at Atheros Communications, was sentenced to 18 months in federal prison for his role in the largest hedge fund insider trading case in history. Hariri also drew a two-year term of supervised release and a $50,000 fine.

In his guilty plea, Hariri confessed to passing nonpublic information ("inside information") relating to Atheros to Ali Far, a hedge fund manager, for the purpose of executing profitable securities transactions. In exchange for inside information regarding Atheros, Far provided Hariri with tips to buy and sell the stocks of other technology companies. Hariri also pled guilty to substantive securities fraud.