India-born woman jailed to 1 yr in insider trading case in US
Khan had faced 30 years in prison but defence lawyers and federal prosecutors had sought a lenient sentence for her saying her cooperation led to a number of intercepted phone conversations between Rajaratnam and other top Wall Street
executives. Khan's defense team had asked for a term of five years' probation.
Her "extraordinary" and "invaluable" cooperation in the government's crackdown on insider trading had helped secure convictions and guilty pleas of 12 individuals, including that of Rajaratnam, Gupta, McKinsey partner Anil Kumar, former Intel executive Rajiv Goel and Galleon portfolio manager Adam Smith, prosecutors and defense lawyers said.
In a letter to Rakoff prior to Khan's sentencing, Bharara said Khan had identified Rajaratnam as her primary co-conspirator and tippee and provided federal agents with details into how he engaged in insider trading schemes.
Khan also made phone calls to Rajaratnam which were intercepted by the government and during these phone conversations, Rajaratnam made "incriminating admissions" about insider trading.
She had previously pleaded guilty in 2001 to wire fraud and was sentenced in 2002 to home detention after agreeing to cooperate with a federal probe of Rajaratnam in California.
She was charged with obstructing justice when, after pleading guilty and agreeing to cooperate with a federal investigation of Rajaratnam, she returned to insider trading and passed the fund manager illegal tips in 2007.
"The message from this court is that you cannot have it both ways, this is too serious," Rakoff said. "You cannot have it both ways -- to cooperate and then, obstruct justice."
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