Shopclues founder arrested on insider trading charges

by CXOtoday News Desk    Aug 01, 2013

Sandeep Aggarwal

Sandeep Aggarwal, an Indian national and a holding a US permanent citizenship card was arrested by the FBI on insider trading charges related to a leak on a potential deal between Yahoo and Microsoft. The leaking of information took place in 2009, while he was working as a research analyst for primarily technology, in the firm Collins Stewart in San Francisco.

The allegations against Aggarwal cover details about him leaking secret information to his ‘best industry contact’ and friend SAC portfolio manager, Richard Lee and a dozen other industry insiders regarding a partnership between Microsoft and yahoo.

The FBI has filed not only insider trading charges on him but also a civil suit by the US Securities and Exchange Commission. “Like many others before him, Aggarwal allegedly broke the law and provided material non-public information on a Microsoft-Yahoo deal,” said FBI assistant director-in-charge George Venizelos. “When questioned by his employer about the source of the information, he lied.”

The hedge fund firm SAC is also under investigation for corrupt work culture as employees were encouraged to do whatever it takes to get an edge over information relating to stock tading in the market.