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NY insider trading cooperator gets year in prison

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The Associated Press

NEW YORK (AP) — A Florida investor who initially lied when she cooperated with one of the government’s biggest insider trading investigations has been sentenced in New York to a year in prison.

Roomy Khan of Fort Lauderdale, Fla., was sentenced Thursday in federal court in Manhattan. She also must give up $1.8 million in profits as part of a deal with the Securities and Exchange Commission to resolve civil charges. A consent order calls for her to pay $1.55 million in profits and an additional $304,398 in interest.

The 53-year-old Khan has admitted she conspired from 2004 through November 2007 to trade inside information. She pleaded guilty in 2009 to conspiracy, securities fraud and obstruction of justice and agreed to cooperate.

The probe she aided has resulted in more than two dozen convictions.