Sandeep aggarwal Shopclues CEO

ShopClues founder and former CEO Sandeep Aggarwal has pleaded guilty to the insider trading charges, in the federal court of Manhattan, reports Bloomberg.

Aggarwal admitted that he had tipped Richard Lee, a former SAC Capital portfolio manager about a pending deal between Yahoo and Microsoft in 2009, while he was working at Collins Stewart as an analyst, in order to improve his standing as an analyst and increase revenues of his firm.

As indicated by the report, Aggarwal might face 25 years in prison when he’s sentenced and may also be deported to India, although he has apparently agreed to co-operate with prosecutors, in the hope of receiving a lenient sentence.

Lee had earlier pleaded guilty to insider trading charges while SAC Capital had agreed to plead guilty to securities fraud and wire fraud and pay $1.8 billion in penalties last week.

FBI agents had arrested Sandeep Aggarwal on insider trading charges in July 2013 and he had been charged with one count of conspiracy to commit securities fraud and one count of conspiracy to commit wire fraud. He was also being sued by the U.S. Securities and Exchange commission (more on the original case)

A day later, Aggarwal was however released on a $500,000 bond and ShopClues had said that all the charges contained in the complaint were just accusations and the defendant is presumed unless and until proven guilty. Last month, co-founder Sanjay Sethi had taken over from Aggarwal as ShopClues CEO.

Launched in July 2011, ShopClues is the Indian subsidiary of the US based Clues Network Inc and has raised around $25 million until now: $10 million from Helion Venture Partners, Nexus Partners and CEO Teruhide Sato in March 2013, $15 million across multiple funding rounds including a $4 million Series A funding in September 2012, and more than $2 million angel funding from unknown International angel investors in December 2011.

The company is a fully managed e-commerce marketplace which allows merchants, brand owners and authorized dealers to showcase their product merchandise to prospective customers, while taking care of the marketing, payment and the product fulfillment processes. It claims to currently have 19,000 merchants on board.