An IT contractor has had insider trading charges filed against him by the U.S. securities and exchange commission due to confidential client information he stole while working in the Singapore branch of an investment bank.
The charges also includes his wife and father who he allegedly tipped off with nonpublic information about impending mergers, acquisitions, and tender offers.
Furthermore, Rajeshwar Gannamaneni was also alleged to have traded in an account that he controlled that was opened in the name of a family member, who was living in the U.S. at the time.
Both his wife, Deepthi Gandra, and his father, Linga Rao Gannamaneni, lives in India and together with Gannamaneni, reaped $600,000 in profits by trading while in possession of inside information in advance of at least 40 corporate events.
“As alleged in our complaint, Gannamaneni abused his work-related access to sensitive, market-moving nonpublic information to enrich himself and those he tipped," said Kelly Gibson, associate director of enforcement in the SEC's Philadelphia Regional Office.
“Our continued use of innovative analytical tools to find suspicious trading patterns and expose misconduct demonstrates our resolve to catch insider traders who seek to take illegal advantage of the U.S. markets for personal gain."
A court-ordered freeze of asset has been obtained by the SEC across three U.S. brokerage accounts and one U.S. bank account connected to the alleged trading.
Following investigations by the SEC, charges of fraud have been filed against the defendants. The commission now seeks disgorgement of allegedly ill-gotten gains, pre-judgment interest, penalties, and injunctive relief.
The Monetary Authority of Singapore assisted the SEC in their investigations, together with the Financial Industry Regulatory Authority.