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SUNDAY, NOVEMBER 22, 2009
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Hedge Fund Founder Nabbed for Insider Trading

Raj Rajaratnam's $3B Galleon Group trades tech stocks

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(Newser) – The founder of a $3 billion hedge fund and two other financial executives have been charged with insider trading, the Business Insider reports. Raj Rajaratnam, whose Galleon Group focuses on high tech stocks, was charged with conspiracy and fraud related to trades of Hilton and Google stock, among others. Execs from Intel Capital and McKinsey have also been charged in the in the scheme, which authorities say goes back to 2006. Rajaratnam was arrested yesterday.

The Securities and Exchange Commission (SEC) headquarters in Washington.
The Securities and Exchange Commission (SEC) headquarters in Washington.   (AP Photo)
Securities and Exchange Commission Chair Mary Schapiro.
Securities and Exchange Commission Chair Mary Schapiro.   (AP Photo)
The Galleon Group manages around $3 billion.
The Galleon Group manages around $3 billion.   (Shutterstock)
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11 comments
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myvoice
Oct 16, 09 11:07 AM CDT
I suppose now Citrixguy is going to say we need to remove all Sri Lankans from Wall Street! Reply
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IN RESPONSE:
shonangreg
Oct 17, 09 2:56 AM CDT
Is Citrixguy your daddy? Don't worry about what he is going to say. You have no comment of your own on the article, myvoice?
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0
alkaseltzersammich
Oct 16, 09 11:09 AM CDT
I just don't get the greed on wall street. Is making 20 mill a year just not enough for these people? Is an extra few million a year really going to make a difference? Reply
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IN RESPONSE:
Reader64481089
Oct 16, 09 1:34 PM CDT
If you dig deep enough you will find they are not doing it for the money, the money is a byproduct and the end goal is the power the trade brings. To those sitting outside the inner circle they are the gods of Wall Street and fantastic business minds and they are worshiped this is the true payoff for this type greed and the cash is a bonus
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divetrader
Oct 16, 09 11:20 AM CDT
Those stupid traders. Until the SEC reverses a rule they made legal in Flash trading, anyone with enough money can get info on incoming trades before the trade is executed. It should be illegal, but isn't yet. The old fashioned insider trading is outmoded. Reply
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