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This Article is From May 28, 2011

Indian-origin man pleads guilty in insider trading case in US

Boston: An Indian-origin hedge fund manager in the US has pleaded guilty to his involvement in insider trading schemes and could face up to 20 years in prison.

Samir Barai, 39, a portfolio manager at two different New York hedge funds, pleaded guilty before Magistrate Judge Kevin Nathaniel Fox to one count of conspiracy to commit securities fraud and wire fraud, one count of wire fraud and one count of obstruction of justice, Preet Bharara, the United States Attorney for the Southern District of New York said.

Barai, who had been arrested on February 8 this year and charged in a criminal complaint, is scheduled to be sentenced on August 29, 2011.

He faces a maximum sentence of 20 years in prison and a fine of USD 250,000, or twice the gross gain or loss from the offense on the conspiracy count and a maximum fine of five million dollars on the securities fraud count.

In addition, Barai agreed as part of his plea agreement to forfeit the amount of proceeds obtained as a result of the offenses.

According to court documents, Barai worked as a portfolio manager at two hedge funds located in New York between 2006 and 2010.

During this time, he and his co-conspirators, including Donald Longueuil, Noah Freeman, Jason Pflaum and Winifred Jiau participated in a conspiracy to obtain material, non public information.

The inside information included detailed financial earnings about numerous public companies, including NVIDIA and Marvell Technology Group.

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