new york (Bloomberg) — David Slaine, identified in court papers as a former Galleon Group LLC trader, was accused in a US Securities and Exchange Commission lawsuit of improperly trading on tips from a UBS Securities LLC executive.

Separately, Slaine pleaded guilty yesterday to criminal charges as part of the insider-trading investigation.

Slaine, while a portfolio manager at DSJ International Resources Ltd., made more than $500,000 using tips from Mitchel Guttenberg, the SEC claimed in a complaint filed yesterday in federal court in New York. Guttenberg, a UBS AG institutional client manager, was sentenced to six-and-a-half years in prison in 2008 for helping two hedge fund traders make more than $15 million by leaking them news about changes in the firm's analyst ratings.

The lawsuit links the Galleon case to an earlier insider-trading ring that fed off tips from a Morgan Stanley compliance officer. In all, 13 people were charged criminally in 2007 in that case.

"Slaine knew, or should have known, that this information was being tipped in breach of a duty to UBS," yesterday's SEC complaint said.

Cynthia Monaco, a lawyer for Zvi Goffer, one of 21 people accused in of insider trading in the Galleon case, said in a January 29 letter to a judge in the Galleon case that Slaine is cooperating with prosecutors.

Stephen Kaufman, a lawyer for Slaine, didn't immediately return a call.

In its lawsuit, the SEC said Guttenberg leaked information about analyst recommendations to Slaine, 50, who lives in New York. In December, hedge fund trader Erik Franklin was sentenced to probation after cooperating with prosecutors in the case against Guttenberg. Franklin and another hedge fund trader, David Tavdy, got tips from Guttenberg, authorities said.

In the Galleon case, 21 people have been accused in two overlapping fraud schemes involved Galleon Group founder Raj Rajaratnam.