An Indian IT contractor has agreed to settle insider trading charges brought against him by the Securities and Exchange Commission (SEC), by paying nearly USD 800,000 in penalties.
Rajeshwar Gannamaneni, 36 is a citizen of India, with a last known residence in Singapore.
In December last year, the SEC charged Gannameneni with securities fraud, based on his role in a serial insider trading scheme, and obtained a temporary restraining order freezing his United States assets.
The SEC's complaint alleged that Gannamaneni worked as an IT contractor at the Singapore branch of an investment bank, and that he used non-public information about impending mergers, acquisitions, and tender offers, involving the investment bank's clients to trade in advance of at least 40 corporate events.
According to the complaint, the illicit trading was conducted in Gannamaneni's own name, and in accounts in the names of his wife Deepthi Gandra, his father Linga Rao Gannamaneni, and another family member.
Gannamaneni has agreed to settle the SEC's case against him, paying nearly USD 800,000 in disgorgement, prejudgment interest, and a civil penalty.
He has also agreed to be permanently enjoined from violating the anti-fraud provisions of the Securities and Exchange Act. The SEC has also moved to voluntarily dismiss its charges against Gandra and Linga Rao Gannamaneni.
The SEC's complaint had alleged that between December 2013 and August 2016, Gannamaneni abused his position as a senior software consultant at the investment bank and accessed sensitive, highly-confidential information concerning at least 40 mergers, acquisitions, tender offers, and other significant corporate events of the investment bank's clients.
Gannamaneni then illegally traded on that information and shared it with his father and wife who unlawfully traded on it, collectively realizing illicit profits of about USD 600,000.