By David Glovin

Roomy Khan, a key government witness in the insider trading case against Raj Rajaratnam, was arrested for theft of trade secrets in 2000, a year before she was charged for insider trading, according to a court filing today by a defense lawyer.

The previously undisclosed arrest preceded Khan's 2001 arrest for insider trading, which led to a sentence of probation, and was before her 2007 insider trading arrest in the case that developed against Rajaratnam. It's not clear from court papers whether the 2000 trade secrets prosecution was related to the 2001 insider trading case.
Dowd's filing also discloses that Khan told investigators in 2007 that she bought shares in Hilton Hotels Corp.

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