Singapore Resident Settles Charges in Serial Insider Trading Scheme
Litigation Release No. 24515 / June 27, 2019
Securities and Exchange Commission v. Rajeshwar R. Gannamaneni, Deepthi Gandra, and Linga R. Gannamaneni, No. 18-CV-11390 (S.D.N.Y. filed December 6, 2018)
Rajeshwar Gannamaneni has agreed to settle the Securities and Exchange Commission's case against him, paying nearly $800,000 in disgorgement, prejudgment interest, and a civil penalty.
On December 6, 2018, the SEC charged Gannameneni with securities fraud based on his role in a serial insider trading scheme, and obtained a temporary restraining order freezing his United States assets. The SEC's complaint alleged that Gannamaneni worked as an IT contractor at the Singapore branch of an investment bank and that he used nonpublic information about impending mergers, acquisitions, and tender offers involving the investment bank's clients to trade in advance of at least 40 corporate events. According to the complaint, the illicit trading was conducted in Gannamaneni's own name and in accounts in the names of his wife Deepthi Gandra, his father Linga Rao Gannamaneni, and another family member.
Gannamaneni agreed to be permanently enjoined from violating the antifraud provisions of Section 10(b) of the Securities and Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, and the proxy-related fraud provisions of Exchange Act Section 14(e) and Rule14e-3 thereunder. Gannamaneni further agreed to pay disgorgement of $376,414, prejudgment interest of $39,379, and a civil penalty of $376,414. The settlement is subject to court approval. The SEC has also moved to voluntarily dismiss its charges against Deepthi Gandra and Linga Rao Gannamaneni.
The SEC's investigation was conducted by Polly Hayes and Assunta Vivolo of the Philadelphia Office, with assistance from John Rymas and Pat McCluskey of the Market Abuse Unit's Analysis and Detection Center. The case was supervised by Kelly L. Gibson. Julia C. Green, Karen M. Klotz, and Jennifer C. Barry led the SEC's litigation. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the Monetary Authority of Singapore.