Rajaratnam's Defense Has a Tough Job Ahead

With the US government soon to rest its criminal insider trading case against Galleon Group co-founder Raj Rajaratnam, the hedge-fund mogul has a lot of explaining to do. Jurors in Manhattan federal court have spent the last three-and-a-half weeks listening to wiretap recordings of phone conversatio...

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Bibliographic Details
Published in:Bloomberg businessweek (Online) 2011-04, p.1
Main Authors: Glovin, David, Hurtado, Patricia, Van Voris, Bob
Format: Magazinearticle
Language:English
Subjects:
Hedge funds
Insider trading
Litigation
Rajaratnam, Raj
Securities fraud
Online Access:Get full text
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Summary:With the US government soon to rest its criminal insider trading case against Galleon Group co-founder Raj Rajaratnam, the hedge-fund mogul has a lot of explaining to do. Jurors in Manhattan federal court have spent the last three-and-a-half weeks listening to wiretap recordings of phone conversations implicating the 53-year-old in what the government says is the largest hedge fund insider-trading scheme ever prosecuted. Rajaratnam's best chance may be to argue that none of the tips he received were significant by themselves in his decision to buy or sell stock, says Stephen Miller, a former federal prosecutor who is now a partner with the law firm Cozen O'Connor. Instead, Rajaratnam may claim that the tips were parts of a "mosaic" that included public and nonpublic information.
ISSN:0007-7135
2162-657X