SEC charges three Indians in insider trading ring spanning three countries

The SEC obtained a court-ordered freeze of assets in three US brokerage accounts and one US bank account connected to the alleged trading.

Published: 07th December 2018 10:25 AM  |   Last Updated: 07th December 2018 10:25 AM   |  A+A-

Image used for representational purpose for arrest.


NEW YORK: An Indian IT contractor, his wife and father have been charged in the US with insider trading after he illegally tipped them with confidential client information he stole while working in the Singapore branch of an investment bank.

Rajeshwar Gannamaneni, 36, is a citizen of India with a last known residence in Singapore.

He provided nonpublic information about impending mergers, acquisitions, and tender offers to his wife, Deepthi Gandra, 33 and his father, Linga Rao Gannamaneni, 68 who lives in India, The Securities and Exchange Commission said in a statement.

The SEC obtained a court-ordered freeze of assets in three US brokerage accounts and one US bank account connected to the alleged trading.

The SEC's complaint alleges that between December 2013 and August 2016, Gannamaneni abused his position as a senior software consultant at the investment bank and accessed sensitive, highly-confidential information concerning at least 40 mergers, acquisitions, tender offers and other significant corporate events of the investment bank's clients.

Press release. (Screengrab@@SEC_News)

Gannamaneni then illegally traded on that information and shared it with his father and wife who unlawfully traded on it, collectively realizing illicit profits of about USD 600,000.

He also allegedly traded in an account that he controlled that was opened in the name of a family member, who was living in the US at the time.

Gannamaneni asked this family member, a cousin who at the time lived in Virginia, to open an investment account at an American brokerage firm, so that he could place trades in this account from Singapore.

"As alleged in our complaint, Gannamaneni abused his work-related access to sensitive, market-moving nonpublic information to enrich himself and those he tipped," said Kelly L.

Gibson, Associate Director of Enforcement in the SEC's Philadelphia Regional Office.

"Our continued use of innovative analytical tools to find suspicious trading patterns and expose misconduct demonstrates our resolve to catch insider traders who seek to take illegal advantage of the U.S. markets for personal gain."

The SEC's complaint charges the defendants with fraud and seeks disgorgement of allegedly ill-gotten gains, pre-judgment interest, penalties, and injunctive relief.

More from World.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp