Sell-Side Analyst Who Passed Inside Information To SAC Employee, Who In Turn Traded On It On The Firm's Behalf (Without Steve Cohen's Knowledge Or Approbation*) Is Arrested

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Richard Lee, of the SAC Capital Lees, had a "senior internet research analyst" friend named Sandeep Aggarwal (illustrated at left), who had an unnamed friend working at Microsoft, who had material non-public information re: "a Microsoft-Yahoo partnership agreement...likely to be announced in the next two weeks." See if you can guess what happened next.

Anyway, Aggarwal was arrested yesterday. Marginally related, here's a picture of him in happier times, posing with some of the stuff you could buy from the eCommerce company he founded after his career "analyzing" things.

Sandeep Aggarwal arrested yesterday by FBI agents in San Jose, CA on insider trading charges [@NewYorkFBI]
SEC Charges Tipper of Confidential Information to S.A.C. Capital Portfolio Manager [SEC]
US v. Richard Lee, Sandeep Aggarwal [Complaint]
Sandeep Aggarwal Portrait [CNN Money]
Raising a growth round before aiming for a NASDAQ listing by 2016: The ShopClues Story [YourStory]
*Presumably. Unread emails, the immutable laws of physics, etc.
**Richard Lee also had a friend who had a friend at 3Com, because of course he did:

Related

Doctor Who Tipped Off SAC Manager Wasn't Conspicuous About His Wealth Except When He Was Telling Strangers On Planes About All The Fancy Hotels And Limo Rides Insider Trading Afforded Him

As you may have heard, in addition to the salary he was paid by the University of Michigan, Dr. Sidney Gilman made about $100,000/year through his side-gig advising "a wide network of Wall Street traders."  That network included included Mathew Martoma, recently charged with running “the most lucrative insider trading scheme ever,” based on the information he received from Gilman, who made it a habit of leaking highly confidential information to the former SAC Capital employee. While most people that engage in fraud can't help but spend their ill-gotten gains in a flashy way that attracts unwanted attention (expensive cars, private jets, chinchilla fur coats) the Times reports that Sid Gilman's supplementary income "was not readily apparent in his lifestyle in Michigan." For instance, no second home and no bragging to his colleagues about his life on Wall Street. Still, on at least one occasion, the doctor couldn't help but let the underage girl sitting next to him on a flight home know that she was in the presence of a BSD.

Ex-SAC Analyst Spared Prison, Still Faces The Wrath of Cohen

Take note, insider-traders and those who might be accused of it in spite of their innocence: If you wear a wire and you don't have to go to jail. Wesley Wang, the former SAC analyst who helped convict one former boss and is probably helping to build cases against his bosses at SAC and Trellus Management, will get to keep doing so from the comfort of his northern California home.