Sandeep Aggarwal, the Chief Executive Officer of e-commerce player ShopClues who was arrested on charges of insider trading was let off on a $500,000 bond, according to a new report.
Aggarwal, who was arrested by the Federal Bureau of Investigations on charges insider trading alleged by the Securities and Exchanges Commission will have to appear in federal court in New York on August 2, Bloomberg reported.
“Aggarwal was ordered to surrender his passport, visa and green card, remain in custody with his wife and can only travel to New York for his court appearance,” the Bloomberg report cited US Magistrate Judge Nandor Vadas.
On 30 July, the FBI arrested Sandeep Aggarwal, founder of e-commerce company ShopClues on Insider trading charges.
The former Wall Street Analyst was accused of tipping off hedge fund manager Richard Lee who pleaded guilty of making $1.5 million in illicit profits based on a tip from Aggarwal on a deal between Microsoft and Yahoo and a separte deal by 3Com Corporation in April 2009. Lee, who managed a portfolio of nearly $1.25 bn pleaded guilty on Tuesday, reports the Wall Street Journal.
The trading occurred ahead of public announcement about a Microsoft-Yahoo partnership and the acquisition of 3Com Corporation by Hewlett Packard, said the Securities and Exchange Commission.
According to the SEC statement:
Lee thanked the analyst for the “very specific information” and promptly purchased hundreds of thousands of shares of Yahoo stock in a portfolio that he managed on behalf of S.A.C. Capital. Lee also purchased shares of Yahoo stock in his personal trading account.