New York (HedgeCo.net) – Hedge fund consultant Roomy Khan made her first public appearance a Manhattan court yesterday, according to Bloomberg.

In October of this year, Khan pleaded guilty to a criminal information charging her with conspiracy to commit securities fraud and obstruction of justice, she entered her plea three days after hedge fund billionaire Raj Rajaratnam’s arrest.

Khan lived in California, where she traded securities on her own behalf, and also served as a paid consultant to a hedge fund located in New York. Khan admitted to compensating certain of her sources of inside information by giving them other inside information, cash and/or by executing trades in their personal brokerage accounts.

Khan also admitted in her plea to deleting an incriminating e-mail that she had received from a co-conspirator and attempted to deter other co-conspirators from sending incriminating e-mails or instant messages in light of the then-pending SEC investigation. Khan profited approximately $1.6 million as a result of her insider trading.

Bloomberg reported that U.S. District Judge Richard Berman yesterday formally accepted her plea after asking her several questions, including one about her cooperation agreement with prosecutors. “I just want to make sure you understand you have that obligation?” Berman asked.

Khan answered with “Yes, Sir” or “I understand” to the judge’s questions.

Khan is one of six traders or lawyers who have pleaded guilty and are cooperating.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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