Aug 26, 2011

Judgement as to Deep Shah of Galleon Management

The SEC announced that the Honorable Jed S. Rakoff, United States District Judge, United States District Court for the Southern District of New York, entered a Final Judgment by Default as to Deep Shah on August 23, 2011, in the SEC’s insider trading case, SEC v. Galleon Management, LP, et al., 09-CV-8811 (SDNY) (JSR). The SEC filed its action on October 16, 2009, which alleged that Raj Rajaratnam, Galleon Management, LP, Deep Shah and others engaged in a widespread insider trading scheme involving hedge funds, industry professionals, and corporate insiders.

At the time of the alleged conduct, Shah resided in Jersey City, New Jersey and, in 2007, Shah was employed at Moody’s as a lodging industry analyst. The Commission alleged that Shah violated the federal securities laws by, among other things, tipping Roomy Khan, then an individual investor, to material, nonpublic information about: (a) the July 2007 acquisition of Hilton Hotels Corp. by the Blackstone Group; and (b) the March 2007 acquisition of Kronos Inc. by Hellman & Friedman. Khan traded on the basis of this information and also tipped others, who traded. Khan and others paid Shah cash for the inside information he tipped to Khan. Shah left Moody’s in late 2007 or early 2008, and he is believed to currently reside in India. Shah has failed to appear, answer or otherwise defend the Commission’s action.

The Final Judgment permanently enjoins Shah from violations of Section 10(b) of the Exchange Act of 1934 (“Exchange Act”) and Exchange Act Rule 10b-5; and (2) orders him liable for over $34.5 million comprised of (a) disgorgement of ill-gotten gains of $8,201,464.96, representing Shah’s ill-gotten gains and those of his downstream tippees, (b) prejudgment interest thereon in the amount of $1,755,865.09, and (c) a civil penalty in the amount of $24,604,394.88.

In addition, since the case was filed the SEC has:
  • entered into a settlement with Daniel Chiesi, a former consultant and portfolio manager at New Castle Funds LLC. Pursuant to that settlement, Chiesi is permanently enjoined from violations of Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act of 1933 (“Securities Act”); and is liable for disgorgement of ill-gotten gains of $500,000, together with prejudgment interest of $40,534.90, for a total of $540,534.90.

  • entered into a settlement with David Plate, a proprietary trader at broker/dealer Schottenfeld Group, LLC. Pursuant to that settlement, Plate is permanently enjoined from violations of Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5; and is liable for disgorgement of $43,876.37, plus prejudgment interest of $9,415.54. The judgment further provides that the Court later will determine issues relating to a civil penalty. Plate has agreed to cooperate with the SEC in connection with this action and related investigations.

  • entered into a settlement with Gautham Shankar, a proprietary trader at Schottenfeld. Pursuant to that settlement, Shankar is permanently enjoined from violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5; and is liable for disgorgement of $243,105.59, plus prejudgment interest of $34,462.35. The judgment further provides that the Court later will determine issues relating to a civil penalty. Shankar has agreed to cooperate with the SEC in connection with this action and related investigations.

  • entered into a settlement with Ali Hariri, an Atheros Communications, Inc. executive. Pursuant to that settlement, Hariri is permanently enjoined from violations of Section 10(b) of the Exchange Act, Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act; and is permanently barred him from acting as an officer or director of any public company. Hariri also is liable for disgorgement of ill-gotten gains, together with prejudgment interest, for a total of $2,665.68.

  • entered into a settlement with Robert Moffat, Senior Vice President and Group Executive of IBM’s Systems and Technology Group. Pursuant to that settlement, Moffat is permanently enjoined from violating the antifraud provisions of the federal securities laws, Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5, and barred from acting as an officer or director of any public company.

  • entered into a settlement with Mark Kurland, Chief Executive Officer of New Castle Funds LLC.
    Pursuant to that settlement, Kurland is permanently enjoined from violating the antifraud provisions of the federal securities laws, Section 10(b) of the Exchange Act, Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act. Kurland is also liable for disgorgement of $4,213,630.18, representing profits made and/or losses avoided as a result of the unlawful trading alleged to have occurred at New Castle, together with prejudgment interest thereon in the amount of $204,553.59, for a total of $4,418,183.77.

  • dismissed its claims against New Castle, which is no longer operating as an investment advisor and has filed Form ADV-W with the Commission, withdrawing its registration as an investment advisor. New Castle has agreed to cooperate with the Commission’s staff and has represented that, as a condition of the dismissal of the Commission's action against it, it will not engage in further operations.

  • entered into a settlement with Rajiv Goel, a former managing director in the treasury group of Intel Corp., as well as the Director of Strategic Investments at Intel Capital, an Intel subsidiary that makes proprietary equity investments in technology companies. Pursuant to that settlement, Goel is permanently enjoined from violating the antifraud provisions of the federal securities laws, Section 10(b) of the Exchange Act, Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act. Goel is also required to pay disgorgement in the amount of $230,570.52, plus prejudgment interest in the amount of $23,447.21, for a total of $254,017.73. The Court will determine at a later date whether any civil penalty is appropriate as to Goel. Goel is barred from acting as an officer or director of any public company. Goel has agreed to cooperate with the SEC in connection with this action and related investigations.

  • entered into a settlement with Khan, an individual investor who had been employed at Intel in the late 1990s and had been subsequently employed at Galleon, pursuant to which Khan is permanently enjoined from violating the antifraud provisions of the federal securities laws, Section 10(b) of the Exchange Act, Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act, and is required to pay disgorgement in the amount of $1,552,566.94, plus prejudgment interest in the amount of $304,398.77, for a total of $1,856,965.71. The Court will determine at a later date whether any civil penalty is appropriate as to Khan. Khan has agreed to cooperate with the SEC in connection with this action and related investigations.

  • entered into a settlement with Anil Kumar, a former director at the global consulting firm McKinsey & Co., pursuant to which Kumar is permanently enjoined from violating the antifraud provisions of the federal securities laws, Section 10(b) of the Exchange Act, Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act, and is required to pay disgorgement in the amount of $2.6 million, plus prejudgment interest in the amount of $190,621, for a total of $2,790,621. The Court will determine at a later date whether any civil penalty is appropriate as to Kumar. Kumar has agreed to cooperate with the SEC in connection with this action and related investigations.

  • entered into a settlement with Schottenfeld Group, LLC, a New York limited liability company and registered broker-dealer, pursuant to which Schottenfeld is permanently enjoined from violating the antifraud provisions of the federal securities laws, Section 10(b) of the Exchange Act, Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act, and is required to pay disgorgement in the amount of $460,475.28, plus prejudgment interest in the amount of $72,202.72, and a civil penalty of $230,237.64, representing fifty percent of the disgorgement amount, a discount from a one-time penalty in recognition of its agreement to cooperate. Schottenfeld also agreed to implement enhanced policies and procedures to prevent future securities laws violations, as well as to retain an independent consultant to review its policies and procedures.

  • entered into settlements with Choo-Beng Lee and Ali T. Far, who were both managing members of Far & Lee LLC, a Delaware limited liability company. In addition, Lee was president and Far a managing member of Spherix Capital LLC, an unregistered hedge fund investment adviser based in San Jose, California. Pursuant to the settlements, Lee and Far are permanently enjoined from violating the antifraud provisions of the federal securities laws, Section 10(b) of the Exchange Act, Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act, and are required, jointly and severally, to pay disgorgement in the amount of $1,335,618.17, plus prejudgment interest in the amount of $96,385.52, and a civil penalty of $667,809.09, representing fifty percent of the disgorgement amount, a discount from a one-time penalty in recognition of their cooperation.

  • dismissed its claims against Far & Lee and Spherix, which are now defunct or nearly so, in exchange for their agreement to cooperate and cease doing business.

Aug 17, 2011

Aug 14, 2011

Nupur Indian Dance School To Perform in Cleveland

Nupur Indian Dance School will perform in honor of Shiva Vishnu Temple of Cleveland and to promote Indian art and culture on August 21, 2011 at Westlake Performing Arts Center

Nupur Indian School of Dance

Aug 11, 2011

Hindus and hindu temple support Babu Bhai Patel

Babu Bhai Patel, Vice-Chairman, Hindu Temple of Canton
Tresa Baldas of Detroit Free Press reports that Babu Bhai Patel
lives in a half-million-dollar home, which has a mortgage, and owns 26 pharmacies with 80 employees. He also is vice chairman of the Hindu Temple of Canton. He has one misdemeanor conviction from 1997, although the crime was not disclosed in records.

"Mr. Patel is not a portrait of the common criminal or drifter," Patel's lawyer, Martin Crandall, wrote in court documents. "There is no risk he would flee."

Since Patel's indictment, several in the Hindu community have come to his defense. More than 20 supporters showed up for a detention hearing Tuesday. Several character reference letters have been filed with the court -- including one from the president of the Hindu Temple -- and many offer their homes as collateral to secure Patel's release.

Aug 7, 2011

Physicians of Asian Indian Origin Indicted

HAMMOND, Ind. — The owner of a weight loss clinic with three locations in northwest Indiana and south suburban Chicago and his wife were indicted for allegedly illegally dispensing  amphetamine-based controlled substances to patients and engaging in illegal monetary transactions and tax fraud. The defendants, Rakesh Anand and Meena Anand, were charged in 35-count indictment returned yesterday by a federal grand jury in Hammond, Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, announced today. The U.S. Attorney’s Office in Chicago is handling the prosecution in the Northern District of Indiana.

Rakesh Anand, 55, and Meena Anand, 51, of Tinley Park, will be arraigned at a date still to be determined in Federal Court in Hammond. Rakesh Anand, who owned and operated Doctors Weight Loss Centers in Merrillville, Ind., and Lansing and Orland Park in Illinois, was charged with one count of conspiracy to distribute controlled substances, six counts of distributing controlled substances, 20 counts of illegally structuring monetary transactions to avoid currency transaction reports, three counts of money laundering, one count of conspiracy to defraud the Internal Revenue Service, and four counts of tax fraud. Meena Anand, who assisted her husband in operating the centers and managed the locations in Lansing and Orland Park, faces all of the same charges except the six counts of distributing controlled substances.

The indictment also seeks forfeiture of approximately $6.3 million, including more than $3.6 million that has been frozen by the government in numerous bank and brokerage accounts, as well as more than $700,000 in cash that was seized from the Anands’ home in May 2010.

The investigation was conducted by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation Division, the Food and Drug Administration and the Indiana State Police.

The tax charges allege that Anands substantially under-reported their income on their federal income tax returns for 2005-2008 and, as a result, failed to pay approximately $745,280 in taxes
owed to the IRS.

Between 2002 and February 2010, the drug distribution and conspiracy charges allege that the Anands illegally dispensed amphetamine-based Phendimetrazine and Phentermine to patients without a physician performing a physical examination or any medical tests, and without reviewing patients’ records, obtaining a thorough medical history, or providing any subsequent monitoring. The couple allegedly offered discounts to patients who purchased two or three months supply of the pills with cash or a credit card. The indictment states that a physician may not prescribe these controlled substances for weight reduction or to control obesity without performing the required medical services and protocols, including assuring that patients first attempt to diet and exercise.

The government is being represented by Assistant U.S. Attorneys Matthew Schneider, Diane
Berkowitz and Orest Szewciw.

The charges in the indictment carry the following maximum penalties on each count: conspiracy to distribute controlled substances — 10 years in prison and a $500,000 fine; distribution of controlled substances — five years in prison and a $250,000 fine (except one of these six counts carries a maximum 10-year term and a $500,000 fine); illegally structuring monetary transactions — 10 years and a $500,000 fine; money laundering — 10 years and a $250,000 fine; and tax fraud conspiracy and tax evasion — five years in prison and a $250,000 fine, and restitution is mandatory.  In addition, defendants convicted of tax offenses face mandatory costs of prosecution and remain civilly liable to the Government for any and all back taxes, as well as a civil fraud penalty of 75 percent of the underpayment plus interest. If convicted, however, the Court would determine a reasonable sentence to impose under the advisory United States Sentencing Guidelines.

An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Aug 1, 2011

Kyle Sandilands is not wrong about India being a shithole

Dr. Yadu Singh is the President of Council of Indian Australians.  Dr Yadu Singh is a cardiologist and lives in Sydney, Australia.  Yadu Singh writes that Kyle Sandilands of 2Day FM should be ashamed for making comments against India and River GangesAccording to a report by a local ethnic TV programme 'Desi Kangaroos', Kyle Sandilands said "I like Indians but India is a shit hole and I think that Indians know it is a shit hole" and went further to describe River Ganga as a 'junkyard'.

Yadu Singh states that:
They are hurtful, unnecessary and objectionable to Indian Australians, to whom India will always have a special place. Unlike Kyle, we do not believe India is a “shit hole”. River Ganges, which Kyle is ridiculing outrageously, is accepted as a sacred river by the followers of the Hindu religion. His comments are getting into the realm of religious beliefs of Hindus and he seems to be questioning them. 
Dr. Yadu Singh is making a mountain out of a molehill.  Kyle Sandilands comments are not wrong about India in the applicable context.  Kyle Sandilands's comments should not be taken literally.  He may be guilty of being abrasive, so what?  Are Hindus now going to become sensitive and schizophrenic like Muslims?  The fact is that many cities of India are not clean and all Indians know this.  River Ganges is very polluted and is almost a sewer.  River Ganges is polluted because all kinds of junk is dumped in it.  If Yadu Singh or Indians have complaints, they should probably take it up with the Indian Prime Minister.