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Galleon case netted two more

Nov. 13, 2010 at 9:25 AM

NEW YORK, Nov. 13 (UPI) -- Unsealed court papers in New York show that two other people connected with the Galleon Group have pleaded guilty to improper trading.

Thomas Hardin, a former manager of Lanexa Management LLC, a New York hedge fund, and Franz Tudor, a former trader at Schottenfeld Group LLC pleaded guilty last year, bringing the total to 14 guilty pleas connected to the case, The Wall Street Journal reported Saturday.

At the center of the Securities and Exchange investigation is the Galleon Group, which was founded by Raj Rajaratnam, who is expected to go on trial next year on insider trading charges.

In court papers made public Friday indicated, a key witness in the case, Roomy Khan, obtained insider information from a Moody's analyst and passed it along to Hardin.

The Moody's analyst is also facing criminal charges, the Journal said.

Papers filed in a federal court in Manhattan say Hardin made trades of Google Inc., Hilton Hotels and Kronos Inc. securities based on the confidential information.