New York: Assistant General Leslie Caldwell announced on Tuesday that a young Silicon Valley investment banker of Indian descent and two of his friends have been charged with insider trading in a scheme in which they allegedly made more than $600,000.
Ashish Aggarwal, J.P. Morgan Securities analyst, and his friends surrendered to the Federal Bureau of Investigation (FBI) and were arrested on charges of face securities fraud, conspiracy and wire fraud, Caldwell said.
Aggarwal, 27, who worked in the JP Morgan San Francisco office, allegedly got inside information about upcoming mergers and acquisitions which he shared them with his friend Shahriyar Bolandian, 26; who in turn relayed them to another friend, Kevan Sadigh, 28, the FBI said in a press release.
Bolandian and Sadigh then allegedly used the inside information to trade in advance of the public announcements of Integrated Device Technology Inc.’s April 2012 planned acquisition of PLX Technology Inc., and Salesforce.com Inc.’s June 2013 acquisition of ExactTarget Inc., the FBI said.
Their $600,000-profit apparently didn’t finance luxuries. The FBI said they allegedly used the profits to pay off liabilities and cover the trading losses of Bolandian and Sadigh.
Aggarwal is the latest person of Indian origin to face insider trading charges in the US. Rajat Gupta, a former CEO of the consultancy company, McKinsey, is the best known of them and was convicted in 2012 for insider trading with Raj Rajaratnam, a hedge fund operator of Sri Lankan origin. Anil Kumar, a former McKinsey employee, pleaded guilty in the same case.
In April this year, Amit Kanodia, a private equity investor, and Iftikar Ahmed, a general partner at a venture capital firm, were charged with insider trading.
Attorney Shivbir Grewal and his wife, Preetinder Grewal, were charged last December with insider trading.
Last September, hedge fund portfolio manager Matthew Martoma received a nine-year sentence for insider trading.
Indians have contributed to growth of iconic business firms like Sun Microsystems, Hotmail and some of them have turned into biggest entrepreneurs and job creators
There are many Indian-origin leaders who have become household names today like Indra Nooyi (Pepsi), Shantanu Narayen (Adobe), Satya Nadella (Microsoft), Sundar Pichai (Google)
Hotmail.com founder Sabeer Bhatia, the company was founded in the year 1996
New Delhi, August 21, 2017: Indians are facing accusations from Americans that they are snatching away American jobs, but it’s not the case. There is an Indian- American venture capital firm called Inventus Capital Partners which is trying to throw some light on the contributions Indians have made in the growth of Silicon Valley.
Indians are stereotypically viewed as a source of cheap labor in US Technology Industry but they are much more than that. Case in point is over the last 10-20 years, Indians have contributed to the growth of iconic business firms like Sun Microsystems, Hotmail and some of them have turned into biggest entrepreneurs and job creators instead of being just job seekers.
As per a report from July, Director of Inventus Capital Partners- Manu Rekhi, the company operates from Bengaluru and San Mateo, California, he observed how Indians have left a mark in the American entrepreneurial space.
There are many Indian-origin leaders who have become household names today like Indra Nooyi (Pepsi), Shantanu Narayen (Adobe), Satya Nadella (Microsoft), Sundar Pichai (Google). But these success stories were due to decades of hard work.
In the early 1980’s, arrived in the US the first generation of Indian entrepreneurs. According to Quartz report, Manu Rekhi said, “Among these legends was Kanwal Rekhi (my partner) along with Vinod Khosla, Naren Gupta, Prabhu Goel, Suhas Patil, and many others, who went on to finding notable companies like Sun Microsystems (acquired by Oracle), Excelan, and Cirrus Logic.”
When the early entrepreneurs moved to America global exposure was very limited and also their understanding of consumer behavior of the people in the US was also limited. That is the reason they founded engineering- heavy systems and networking companies instead of going for consumer facing ones.
Slowly, with time more Indian tried their hands at launching new ventures and also US doors opened for foreign students, thus Indian entrepreneurs turned their focus from enterprise to consumer- oriented companies. One prime example of this is Hotmail.com founder Sabeer Bhatia, the company was founded in the year 1996. Sabeer Bhatia is a BITS Pilani graduate, did masters from Stanford University and has worked for Apple before launching his maiden email service.
The 1990s was also the year in which the Indian-origin leaders were also mentors in the Silicon Valley. Case in point is BV Jagadeesh who is a Serial Entrepreneur and Venture Capitalist. Jagdeesh helped to raise the seed money for Netscaler, a San Jose based company. He later went on to become its President and also CEO by the year 2000. Currently, Jagadeesh is a managing partner at KAAJ Ventures, it makes early stage investments in startups, and he is also an adjunct professor at Santa Clara University, takes classes on early-stage startups and valuation. Ram Shriram is a Venture Capitalist, a founding board member and is one of the first investors in Google. His stake in the company was $ 1.3 billion in the mid-2000, he also mentors budding startups.
Rekhi said that later companies of Indian entrepreneurs shifted towards technologies which were more advanced.For example, Jyoti Bansal started App Dynamics, a management and operations analytics firm, which was later acquired by Cisco for $3.7 billion on 22 March 2017. Dheeraj Pandey, Indian Institute of Technology (IIT) Kanpur alumni owns Nutanix, a cloud-computing software company. In 2016, it had a multi- billion dollar initial public offering. Manish Chandra who is the CEO, Poshmark, which is the social fashion marketplace. Chandra created a product which would be “unheard of 20 years ago,” Rekhi said.
For example, Jyoti Bansal started App Dynamics, a management and operations analytics firm, which was later acquired by Cisco for $3.7 billion on 22 March 2017. Dheeraj Pandey, Indian Institute of Technology (IIT) Kanpur alumni owns Nutanix, a cloud-computing software company. In 2016, it had a multi- billion-dollar initial public offering. Manish Chandra who is the CEO, Poshmark, which is the social fashion marketplace. Chandra created a product which would be “unheard of 20 years ago,” Rekhi said.
Indians are less than 1% in the total US population, but still by 2012 they founded 8% of all the American tech & engineering startups. The group has started one-third of the immigrant-founded startups in the US. The firms which they have founded also provide great acquisition opportunities and also made high-value public debuts, Rekhi said, mentions Quartz report.
The first Indian-American founder led company- Nasdaq IPO (Initial Public Offering) opened its doors in 1987 with Excelan going public, but the pickup in big-value exists came only in recent times.
In the last 5 years, the software and services sector, which has 17 companies, tops the list of IPOs owned by Indian founders and co-founders and has a combined market Capital of amount $26.2 billion. The second in the list were Pharmaceuticals, biotechnology, and life sciences in terms of the number of IPOs (six). But, the retail industry saw a much larger market Capital of as much as $6.67 billion, in comparison to Pharmaceuticals, it was $397 million. 10 of these 34 companies that make approximately 29% were acquired following their stock-market debut.
According to Quartz report, Rekhi said: “Even before the turn of the millennium, companies like IBM and Intel had been making acquisitions, but mostly of outsourcing services companies where you’re basically buying manpower.”
But between 2012 and 2017, more than 25 companies by Indian-origin entrepreneurs saw mergers and acquisitions worth- $500 million and more, Rekhi found.
Rekhi noted, “Topping that list is Western Digital’s acquisition of SanDisk, worth a whopping $19 billion, followed by several acquisitions from Cisco, HPE, and SAP.”
Today, 14 of the 261 unicorns are headed by Indian-origin founders (private companies valued at over $1 billion) in the US. These 14 startups, when taken together have a combined value of $35.17 billion and funding of $81.8 billion, with the IT industry taking the lead, according to Rekhi.
NewsGram is a Chicago-based non-profit media organization. We depend upon support from our readers to maintain our objective reporting. Show your support by Donating to NewsGram. Donations to NewsGram are tax-exempt. Click here- www.newsgram.com/donate
They want to help their country with a mobile phone application to address poverty
We want to increase employment for Cambodians
In Cambodia, just 14 percent of students in information technology were women
Mountain View (California), August 19, 2017:A group of Cambodian girls who recently traveled to California to compete in a mobile app competition offered inspiration for other girls worldwide to consider careers in technology.
Their pitch in Silicon Valley wasn’t a bid to be the next billion-dollar company. Instead, they want to help their country with a mobile phone application to address poverty.
“Let’s fight poverty by using our app. Don’t find customers for your product, find products for your customers,” said Lorn Dara Soucheng, 12, who led the team that created the app, Cambodian Identity Product.
“We want to increase employment for Cambodians, so there will be a reduction of Cambodian migrants to work in other countries, reducing poverty through making income and providing charity to local Cambodians,” Chea Sopheata, 11, told the judges at Google’s headquarters. Google was one of the program’s sponsors.
To participate in the Aug. 7-11 Technovation global competition, girls around the world had to build a mobile app — and a business plan — that addressed a U.N. development goal. The Cambodian girls picked poverty.
While globalization has boosted the economic growth of Cambodia, especially its tourism industry, it has also created greater economic inequality and competition. The girls think their app can help.
“We want to promote our culture to people from all over the world,” said Lorn Dara Soucheng.
At their young age, no one expects these girls to be able to solve their country’s most pressing issues quite yet. But their presence here highlighted another issue: girls in tech fields.
In the U.S. and worldwide, the number of women in STEM fields (science, technology, engineering, and math) remains low and has even dropped.
In Cambodia, just 14 percent of students in information technology were women as of 2010. It’s a situation some attribute to a lack of equal access to education and a lack of female role models.
It’s hoped that programs like Technovation can reverse that trend.
“For the first time in history, technology can really help girls have a strong voice and help us have a society that has equality,” said Tara Chklovski, founder, and CEO of Iridescent, the nonprofit organization behind Technovation.
These young Cambodian girls have proved how far they can go with technology. Most come from underprivileged backgrounds but had support from teachers, mentors, and family.
Cambodian American Pauline Seng, a program manager at Google, said the young coders have become role models for many other Cambodians, including herself. She didn’t get into technology until she was 23.
“There’s going to be so many people who aspire to reach this stage and also inspire other people to get involved in technology,” she said.
Although the Cambodian girls did not win the grand prize, which went to a team from Hong Kong, they were proud to have made it to Google and Silicon Valley.
After watching the male CEO of Google, Sundar Pichai, speaking at the closing ceremony, the girls said they believed the tech giant would one day have a female leader.
“Yes!” they said, in unison.
Whether that will come true or not, they have themselves already become the youngest role models to inspire others, one girl at a time. (VOA)
SAN FRANCISCO, April 22, 2017: When Gokul Gunasekaran was offered a full scholarship for a graduate program in electrical engineering at Stanford University, he saw it as the chance of a lifetime.
He had grown up in Chennai, India, and had a solid job offer with a large oil company after getting his undergraduate degree.
He came to America instead, got the Stanford degree and now works as engineer at a data science startup in Silicon Valley.
But for the past five years, he has been waiting for a green card that would give him full legal rights as a permanent resident. In the meantime, he is in a holding pattern on an H1-B visa, which permits him to live and work in the United States but does not allow him easily to switch jobs or start his own company.
“It was a no-brainer when I came to this country, but now I’m kind of regretting taking that scholarship,” said Gunasekaran, 29, who is also vice president with a nonprofit group called Immigration Voice that represents immigrants waiting for green cards.
Many from India
Immigration Voice estimates there are 1.5 million H1-B visa holders in the country waiting for green cards, many of whom are from India and have been waiting for more than a decade.
Many of these immigrants welcomed President Donald Trump’s executive order this week to the federal departments overseeing the program to review it, a move that may lead to H1-B visas being awarded to the highest-paying, highest-skilled jobs rather than through a random lottery.
Their hope is that merit-based H1-Bs might then lead to merit-based green cards.
“I think less random is great,” said Guru Hariharan, the CEO and founder of Boomerang Commerce, an e-commerce startup.
Hariharan, who was previously an executive at Amazon.com and eBay, spent 10 years waiting for his green card and started his own company as soon as he got it.
Green cards can be a path to naturalization, and Hariharan expects to become a U.S. citizen soon.
H1-B visas are aimed at foreign nationals in occupations that generally require specialized knowledge, such as science, engineering or computer programming. The U.S. government uses a lottery to award 65,000 such visas yearly and randomly distributes another 20,000 to graduate student workers.
The H1-B and the green-card system are technically separate, but many immigrants from India see them as intimately connected.
Cap on green cards
The number of green cards that can go to people born in each country is capped at a few percent of the total, without regard to how large or small the country’s population is. There is a big backlog of Indian-born people in the line, given the size of India’s population — 1.3 billion — and the number of its natives in the United States waiting for green cards.
That leaves many of those immigrants stuck on H1-B visas while they wait, which they say makes them almost like “indentured servants,” said Gaurav Mehta, an H1-B holder who works in the financial industry.
Mehta has a U.S.-born son, but he could be forced to take his family back to India at any time if he loses his job and cannot find another quickly.
“He’s never been to my country,” Mehta said of his son. “But we’ll have no choice if we have to go. Nobody likes to live in constant fear.”
The H1-B visa is tied to a specific employer, who must apply for the visa and sponsor the employee for a specific job laid out in the visa application. To switch employers, the visa holder must secure paperwork from his current employer and find another employer willing to take over the visa.
Some H1-B holders suspect that employers purposely seek out Indian immigrants because they know they will end up waiting for green cards and will be afraid to leave their employers.
But changing the green-card system away from country caps to a merit-based system would require an act of Congress. Some executives also worry that allocating H1-Bs and green cards based on salary — while it would be done to counter the argument that immigrants undercut American workers — would hurt startups that cannot afford high wages.
In the meantime, H1-B holders like Nitin Pachisia, founding partner of a venture capital firm called Unshackled Ventures, are taking more practical measures. His firm specializes in taking care of the legal paperwork so that H1-B holders can start their own companies, a process that is possible but tricky.
Pachisia is hopeful that changes to the H1-B visa program could revive interest in making the entire system, from H1-B visas to green cards and eventual citizenship, more merit-based and focused on immigrants who are likely to start companies and create jobs.
“If the purpose of our high-skilled immigration program is to bring in the most talented people, let’s use that as a lens. From that perspective, it’s a good thing we can focus on the most talented, and I’d say most entrepreneurial, people,” he said. (VOA)