Manhattan U.S. Attorney PREET BHARARA said: "Ali Hariri's sentencing provides another reminder of how pervasive insider trading has become and the lengths to which corrupt insiders will go to misuse confidential information for their own personal gain. It should also remind those who might contemplate similar crimes that we will ultimately find you, prosecute you, and convict you. This office is committed to stopping insider trading in its tracks to protect the integrity of our markets."
According to documents previously filed in Manhattan federal court and statements made during HARIRI’s guilty plea proceeding:
From 2008 to March 2009, HARIRI, a vice president at Atheros, engaged in an insider trading scheme in which he obtained material, nonpublic information ("inside information") relating to Atheros. HARIRI provided this inside information to ALI FAR, a hedge fund manager, for the purpose of executing profitable securities transactions. HARIRI knew that the information he provided to FAR was material and non-public, and he disclosed it in breach of fiduciary and other duties of trust and confidence that he owed to ATHEROS. In exchange for inside information regarding Atheros, FAR provided HARIRI with tips to buy and sell the stocks of other technology companies.
On March 3, 2010, HARIRI, 39, of San Francisco, California, pled guilty to conspiring to commit insider trading crimes. HARIRI also pled guilty to substantive securities fraud. FAR has also separately pled guilty to conspiring to commit insider trading crimes and to substantive securities fraud. He is awaiting sentencing.
