A former executive at Massachusetts-based technology firm Akamai Technologies Inc. (AKAM) was charged on Friday by the U.S. Securities and Exchange Commission for being involved in an insider trading scheme operated by Galleon Management hedge fund founder Raj Rajaratnam.

The SEC alleges that Kieran Taylor, who was the senior director of marketing for Akamai, illegally tipped New Castle Funds portfolio manager Danielle Chiesi with confidential information about the company's plans to lower its revenue guidance for 2008.

Mr. Taylor--who couldn't immediately be reached for comment--has agreed to settle the SEC's charges by paying more than $145,000 and has been barred from serving as an officer or director of a public company. The settlement is subject to court approval. Mr. Taylor didn't admit or deny the charges.

Ms. Chiesi--who prompted New Castle to short sell Akamai stock--in turn tipped Mr. Rajaratnam with the nonpublic information. She also provided the information to Steven Fortuna of the hedge fund advisory firm S2 Capital.

The SEC alleges Ms. Chiesi, along with Messrs. Rajaratnam, and Fortuna, collectively shorted hundreds of thousands of shares of Akamai stock based on the nonpublic information illegally tipped by Taylor and that their hedge funds reaped about $10 million in illicit profits.

The agency also alleges Mr. Taylor traded on the nonpublic information by selling 2,500 shares of Akamai stock he held in a personal brokerage account to avoid losses of $20,635.

"Taylor's willing misuse of information about Akamai's financial situation otherwise unknown to the rest of the investing public made him just another cog in the sprawling Rajaratnam insider trading machine," said Sanjay Wadhwa, senior associate director for enforcement in the SEC's New York regional office, in prepared remarks.

Mr. Rajaratnam in 2011 was sentenced to 11 years in prison, the longest term ever imposed in an insider-trading case.

Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com

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