Fired Account Manager Arrested In US Insider Trading Probe
AIPEI (Dow Jones)--Taiwan Semiconductor Manufacturing Co. (TSM) has fired Manosha Karunatilaka, an account manager who was arrested in an insider trading probe in the U.S. on Thursday, company spokeswoman Elizabeth Sun said Friday.
"We terminated his employment contract immediately after he was arrested in the U.S.," Sun said.
Federal prosecutors in the U.S. charged Karunatilaka, and three other people at different firms with peddling financial details about prominent technology companies and with leaking secrets about popular consumer products such as Apple Inc.'s iPhone in exchange for cash.
TSMC said in a statement: "His (Karunatilaka's) actions have violated multiple company policies, including our proprietary information protection and ethics policies."
TSMC said it will continue to cooperate with the U.S. authorities and consider taking legal action if needed.
Karunatilaka is the second Sri Lankan to be charged with insider trading in the US. In October 2009, authorities arrested billionaire Raj Rajaratnam, Galleon Group hedge fund co-founder, and dozens of others executives and traders, for running the biggest insider trading scheme involving a hedge fund.
Rajaratnam, 52, identified by Forbes in 2008 as #262 among America’s 400 richest people, with a net worth of $1.3 billion, was investigated by federal authorities in 2007 for alleged ties to the LTTE.
He faces 13 fraud and conspiracy counts in the insider trading case and if convicted could go to prison for more than 20 years. Rajaratnam has pleaded not guilty and is set to go on trial in February.