BI Debuts New "Roomy Khan Explains It All" Column

You won't believe what Roomy Khan is about to do next!

Remember Roomy Khan?


Not you, Raj Rajaratman. We know you remember her, silly. For the rest of you, it's been awhile since we heard from Roomy, what with the jail time and the post-jail time rest she served after informing on/admitting to her role in the insider trading scandal that brought down Galleon.

But now, Roomy is back! And doing the one thing that a disgraced former tech executive and hedge fund trader is expected to do these days; pen a column for The Business Insider.

Let's just say that "Here's what it's like to get busted for insider trading" is a must-read.

Roomy's debut effort is an introduction to her new readers, telling them a little bit about herself...

I was 27 years old when I landed in Silicon Valley. Armed with a masters in physics from Kent State and a masters in electrical engineering from Columbia University, I looked forward to the palpitating energy of the area.

And a little bit about her past troubles...

I worked undercover for the FBI for six years, which culminated in me testifying in federal court and spending a year in federal prison. I am currently on supervised release

But perhaps the best part of her first column is the final paragraph.

The kicker is both a Hunter S. Thompson-sian comment on the state of modern Wall Street and a preview of what we can expect from the musings of Roomy Khan:

To many, Wall Street offers exciting and exhilarating work, but it also affords cutthroat competition. The stakes are very high, and the rules are nebulous. Most importantly, the environment is rife with temptation and hence luring some to make horrific choices.

We look forward to the palpitating energy of this column.

Here's what it's like to get busted for insider trading [BI]


Letter Reveals More Names in Galleon Case

Roomy Khan, one of the key cooperating witnesses in the Galleon insider trading case, used her extensive rolodex of insiders to gain access to secret market-moving information. Recently released court documents show that list of contacts could be longer than we thought.

Accused Insider Trader Doug Whitman Made A Halfhearted Attempt At The Faux Sympathy Route In Pumping Depressed Informant For Inside Information

Shortly before losing his patience and wondering aloud what the hell she was good for if not bringing him hot tips. FBI informant Roomy Khan, 53, told jury that she gleaned illegal tips on Polycom’s earnings from Sunil Bhalla, a former Polycom exec who was placed on leave in 2009. She then passed those tips to Whitman [Capital founder Doug Whitman] and a handful of other hedgie pals, including convicted Galleon Group co-founder Raj Rajaratnam and her bosses at Trivium Capital Management...“You know what would make you feel better?” Whitman asked Khan when she started complaining about her lot in life. “Calling Sunil and getting a good call on Polycom and being able to short it.” “Yeah, but I could go to jail for doing that, too,” Khan said. “You’re not going to be a slimeball, what do I want to talk to you for,” Whitman said. Roomy Not Slimy [NYP]

Raj Rajaratnam Launches Web Site, Says Wiretaps Are Illegal

In addition to putting up a fancy new website, Raj Rajaratnam and his lawyers made a motion today to suppress the government's wiretap evidence. In a 75-page brief, lawyers for Raj laid out their argument that FBI Special Agent B.J. Kang and the U.S. Attorney’s office in the Southern District of Manhattan intentionally misled the court when they sought authorization secretly listen in on Raj's cell phone.

The Universe Has Good News And Less Good News For Rajat Gupta

The less good news is that a jury found the former McKinsey executive guilty on three counts of securities fraud and one count of conspiracy for passing material non-public information to his friend*, convicted insider trader Raj Rajaratnam. The good news: 1. Rajat could go to jail for twenty years but probably won't ("Gupta faces up to 20 years in prison on each of the fraud charges and up to five years for the conspiracy charge. But his sentence is likely to be significantly lower under federal guidelines.") 2. Sentencing is scheduled for October 18 so he's got the whole summer and then some into a Zen place about going to prison. Also! Plenty of time to do all those things he was too busy for when he was working. This is gonna be his time. Time to taste the fruits and let the juices drip down his chin. The summer of Rajat! Gupta Found Guilty Of Insider Trading [WSJ] *Friend Rajat's ass.