Indian Fund Manager Asked To Pay $390K Settle Charges

According to court documents, from at least January 2008 through July 2009, Yahoo executive Robert Kwok provided confidential information concerning Yahoo’s quarterly earnings and potential business transactions with other companies to Shah who then executed trades based on the inside information.

Shah, however, began cooperating with investigators after federal agents approached her in 2009.

Assistant U.S. Attorney Benjamin Naftalis said Shah provided “important and useful” information about “criminal activities” at hedge fund giant SAC Capital that helped the government prosecute the Steven Cohen-led company.

In court papers, the government said that Shah decided to “cooperate promptly” with the government and assisted “proactively” in the government’s covert investigation into insider trading from 2009 to 2010.

At the direction of the FBI, Shah secretly recorded “more than 700″ telephone calls and meetings with other investment professionals whom the government suspected as being involved in illegal insider-trading activities.

Shah recorded conversations with more than 80 people and many of these recordings “captured incriminating statements” by investment professionals.

She also identified about two dozen investment managers, research analysts and consultants whom she believed had engaged in insider trading.