Indian Fund Manager Asked To Pay $390K Settle Charges

NEW YORK: An Indian portfolio manager has been ordered to forfeit over $ 300,000 to settle charges filed by U.S. Securities and Exchange Commission that she illegally tipped and traded on insider information concerning inernet company Yahoo’s earnings.

Reema Shah, 42, was ordered by the U.S. District Court here to pay disgorgement of $ 388,807 plus prejudgement interest of $ 1,296 and was permanently enjoined from any future violations of federal securities laws.

Shah had pleaded guilty in 2012 to securities fraud in a parallel civil insider trading case case.

Shah was at the time a portfolio manager at an asset management firm that managed billions of dollars in mutual funds and a hedge fund.

The SEC said that no penalty would be imposed in light of Shah’s sentence in the parallel criminal case and her cooperation.

In the parallel criminal action, Shah was sentenced to two years of probation and ordered to forfeit $ 11,751 and pay a $500,000 criminal fine in October.

Shah has also consented to a order barring her from association with any investment adviser, broker, dealer, municipal securities dealer or transfer agent.

Manhattan’s top federal prosecutor Preet Bharara had submitted in court that Shah “provided extensive substantial assistance to the Government in the investigation and prosecution of other persons who committed federal offenses.”?