Roomy and Raj, together again...sorta...also not.
Life is terribly unfair. You help bring down Raj Rajaratnam and get yelled at by a defense lawyer during another insider-trading trial, but you tell a few white lies, destroy some evidence, warn some of your friends—including the only fugitive in the whole insider-trading crackdown—that the Feds are on to them and perjure yourself a little, and you don't get to get away with your second insider-trading conviction.
On the one hand, Roomey Khan's assistance as a cooperating witness was "extremely substantial." On the other, she seems to have told between 1 and 100 lies to government officials.
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]
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.
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.