SEC Halts Alleged Insider Trading Ring Spanning Three Countries
IT contractor Rajeshwar Gannamaneni stole confidential client information from his role at an investment bank in Singapore and tipped his wife Deepthi Gandra and father Linga Rao Gannamaneni, enabling them to generate approximately $600,000 in illicit profits from at least 40 corporate events, leading the SEC to charge all three with fraud and seek asset freezes, disgorgement, penalties, and injunctive relief.
The SEC charged IT contractor Rajeshwar Gannamaneni, his wife Deepthi Gandra, and his father Linga Rao Gannamaneni with insider trading fraud for using nonpublic information about at least 40 corporate events—including mergers, acquisitions, and tender offers—to generate approximately $600,000 in illegal profits. The defendants traded through U.S.-based accounts, including one controlled by Gannamaneni under a family member’s name, prompting the SEC to secure a court-ordered freeze of assets in three U.S. brokerage accounts and one U.S. bank account. The SEC seeks disgorgement of ill-gotten gains, pre-judgment interest, civil penalties, and injunctive relief, with litigation led by Julia C. Green, Karen Klotz, and Jennifer C. Barry.
The SEC filed insider trading charges against IT contractor Rajeshwar Gannamaneni, his wife Deepthi Gandra, and his father Linga Rao Gannamaneni for exploiting confidential, market-moving information stolen during Gannamaneni’s employment at an investment bank’s Singapore branch. Gannamaneni allegedly provided nonpublic details about at least 40 corporate events—including mergers, acquisitions, and tender offers—to his wife and father, who used the tips to execute profitable trades in U.S. markets. The trio collectively earned approximately $600,000 in illicit profits, with at least one trade account controlled by Gannamaneni but opened under a family member’s name who resided in the U.S. at the time. The SEC obtained a court-ordered freeze on assets linked to the scheme, including three U.S. brokerage accounts and one U.S. bank account. The investigation, spearheaded by the SEC’s Philadelphia Regional Office with support from FINRA and Singapore’s Monetary Authority, relied on advanced analytical tools to detect suspicious trading patterns. Litigation is being led by SEC attorneys Julia C. Green, Karen Klotz, and Jennifer C. Barry, who are seeking disgorgement of ill-gotten gains, pre-judgment interest, civil penalties, and injunctive relief. The SEC emphasized its commitment to using innovative technology to expose insider trading and protect the integrity of U.S. financial markets.
Exhibits & Attached Documents (1)
Extracted insights
- $600K $600,000 $100K–$1M
- person confidential client information
- scheme_term insider trading charges
- person it contractor
- person nonpublic information
- person rajeshwar gannamaneni
- agency sec complaint
- agency sec investigation
- agency sec litigation
- agency Securities and Exchange Commission
- SEC filed Insider Trading Charges
- IT Contractor stole Confidential Client Information
- SEC obtained Court-Ordered Freeze of Assets
- Rajeshwar Gannamaneni provided Nonpublic Information
- Rajeshwar Gannamaneni tipped Deepthi Gandra and Linga Rao Gannamaneni
- The Three reaped $600,000 in Profits
- SEC Complaint charges Defendants with Fraud
- SEC Complaint seeks Disgorgement of Gains
- Polly Hayes and Assunta Vivolo conducted SEC Investigation
- Julia C. Green, Karen Klotz, and Jennifer C. Barry will lead SEC Litigation
The Securities and Exchange Commission has filed insider trading charges against an IT contractor and two others he illegally tipped with confidential client information he stole while working in the Singapore branch of an investment bank. The SEC obtained a court-ordered freeze of assets in three U.S. brokerage accounts and one U.S. bank account connected to the alleged trading. The SEC's complaint alleges that Rajeshwar Gannamaneni provided nonpublic information about impending mergers, acquisitions, and tender offers to his wife, Deepthi Gandra, and his father, Linga Rao Gannamaneni, who lives in India. Gannamaneni also allegedly traded in an account that he controlled that was opened in the name of a family member, who was living in the U.S. at the time. According to the allegations in the SEC's complaint, the three collectively reaped approximately $600,000 in profits by trading while in possession of inside information in advance of at least 40 corporate events. "As alleged in our complaint, Gannamaneni abused his work-related access to sensitive, market-moving nonpublic information to enrich himself and those he tipped," said Kelly L. Gibson, Associate Director of Enforcement in the SEC's Philadelphia Regional Office. "Our continued use of innovative analytical tools to find suspicious trading patterns and expose misconduct demonstrates our resolve to catch insider traders who seek to take illegal advantage of the U.S. markets for personal gain." The SEC's complaint charges the defendants with fraud and seeks disgorgement of allegedly ill-gotten gains, pre-judgment interest, penalties, and injunctive relief. The SEC's continuing 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 Ms. Gibson. Julia C. Green, Karen Klotz, and Jennifer C. Barry will lead the SEC's litigation. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the Monetary Authority of Singapore.
The Securities and Exchange Commission has filed insider trading charges against an IT contractor and two others he illegally tipped with confidential client information he stole while working in the Singapore branch of an investment bank. The SEC obtained a court-ordered freeze of assets in three U.S. brokerage accounts and one U.S. bank account connected to the alleged trading. The SEC's complaint alleges that Rajeshwar Gannamaneni provided nonpublic information about impending mergers, acquisitions, and tender offers to his wife, Deepthi Gandra, and his father, Linga Rao Gannamaneni, who lives in India. Gannamaneni also allegedly traded in an account that he controlled that was opened in the name of a family member, who was living in the U.S. at the time. According to the allegations in the SEC's complaint, the three collectively reaped approximately $600,000 in profits by trading while in possession of inside information in advance of at least 40 corporate events. "As alleged in our complaint, Gannamaneni abused his work-related access to sensitive, market-moving nonpublic information to enrich himself and those he tipped," said Kelly L. Gibson, Associate Director of Enforcement in the SEC's Philadelphia Regional Office. "Our continued use of innovative analytical tools to find suspicious trading patterns and expose misconduct demonstrates our resolve to catch insider traders who seek to take illegal advantage of the U.S. markets for personal gain." The SEC's complaint charges the defendants with fraud and seeks disgorgement of allegedly ill-gotten gains, pre-judgment interest, penalties, and injunctive relief. The SEC's continuing 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 Ms. Gibson. Julia C. Green, Karen Klotz, and Jennifer C. Barry will lead the SEC's litigation. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the Monetary Authority of Singapore.