PREET BHARARA, the United States Attorney for the Southern District of New York, announced that MANOSHA KARUNATILAKA was sentenced yesterday in Manhattan federal court to 18 months in prison for conspiring to participate in an insider trading scheme in which he defrauded a public company to obtain material, non-public information (“Inside Information”) and provided that information to members of the investment community for the purpose of executing securities transactions.
KARUNATILAKA participated in the insider trading conspiracy while working as an account manager for Taiwan Semiconductor Manufacturing Company, Ltd. (“TSMC”). He pled guilty to one count of conspiracy to commit securities fraud and wire fraud on May 11, 2011. U.S. District Judge JED S. RAKOFF imposed yesterday’s sentence.
According to the information, a complaint previously filed in this case, and statements made during the guilty plea proceeding:
Between 2008 and 2010, KARUNATILAKA and his co-conspirators participated in a conspiracy to obtain Inside Information, including TSMC product sales and shipping information. They used an “expert networking” firm (the “Firm”) for the purpose of facilitating “consultation calls,” during which KARUNATILAKA provided the Inside Information to Firm clients. Between January 2008 and June 2010, the Firm paid KARUNATILAKA more than $35,000 for his consultation calls.
On October 8, 2009, for example, KARUNATILAKA had a telephone conversation with a technology analyst at a financial institution in New York, New York, during which he provided material non-public information about TSMC and TSMC’s customers, in violation of his fiduciary and other duties of trust and confidence to TSMC.
In his plea agreement, KARUNATILAKA admitted that, based on his participation in the conspiracy, the Inside Information he provided to others resulted in trading gains of more than $1 million.
Sunday, September 18, 2011
Manosha Karunatilaka Sentenced in Manhattan Federal Court to 18 Months in Prison for Conspiring to Engage in Insider Trading
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