Thursday, February 11, 2010
Raj Rajaratnam
The potential prison time continues to grow for those accused of being involved in the biggest insider trading scandal ever involving hedge funds. Federal prosecutors this week submitted a revised indictment against Raj Rajaratnam, a former portfolio manager at Galleon Technology Offshore, who allegedly traded on information delivered to him by others on Wall Street involving stocks for Hilton Hotels, Google, Clearwire, Advanced Micro Devices, Polycom and other companies.
Some of Rajaratnam’s alleged co-conspirators have already given up the fight. Rajiv Goel, a former Intel executive and business school classmate of Rajaratnam’s, agreed to plead guilty to two counts of conspiracy and securities fraud; he faces up to 25 years in prison.
Two other alleged co-conspirators, Ali Far and Roomy Khan, pled guilty to inside trading charges and are cooperating with prosecutors.
The charges against Rajaratnam include five counts of conspiracy to commit securities fraud and six counts of securities fraud; he faces up to 185 years in prison.
-Noel Brinkerhoff
Ex-Intel Executive Admits to Inside Trading (Courthouse News Service)
United States v. Rajiv Goel (U.S. District Court, Southern New York) (pdf)
Hedge Fund Traders Face Multiple Counts (Courthouse News Service)
Federal Prosecutors Boost Indictment against Galleon Group Founder in Insider Trading Case (by Larry Neumeister, Canadian Business)
Judge Orders Galleon Defendants to Release Tapes (by Zachary Kouwe, New York Times)
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