Two leaders at Spherix Capital have agreed to pay more than $2 million to settle a civil insider trading case. The Wall Street Journal reports that Spherix founder, Ali T. Far, and former president, Richard Choo-Beng Lee, agreed to pay disgorgement and prejudgment interest totaling $1.43 million, in addition to a civil penalty of $667,809.
According to the Wall Street Journal, Far and Lee pleaded guilty to criminal charges of insider trading and have worked with prosecutors in a massive insider trading probe. Their cooperation helped uncover the Galleon Group insider trading scheme.
The settlement was submitted to U.S. District Judge Jed S. Rakoff for approval.