According to multiple reports, Atherton resident Roomy Khan tipped the Galleon Group hedge fund that Google's second-quarter earnings statement wouldn't meet expectations.
Khan got the tipped from an unnamed source at Market Street Partners.
The federal complaint against Galleon says that the tip netted the hedge fund $9.3 million -- though the fund lost more money than it gained on such tips overall.
Google has now stopped working with Market Street Partners, which offers "investor relations and financial media consulting for private and public technology companies" according to its website.
Google is also conducting its own investigation into the matter, according to a company spokesperson, and says that no one at the company participated in the scheme.
Khan, who herself made $500,000 on the Google tip, is now cooperating with federal prosecutors as a witness against the Galleon Group. She reportedly previously worked at Intel, another company reportedly targeted by the insider-trading ring.
And get this: She was sued in 2008 by a maid for alleged violations of labor laws.
Jackson West wonders how bad you have to be at capitalism to lose money insider trading.
