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Hedge Fund Founder Nabbed for Insider Trading

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

By Harry Kimball,  Newser Staff

Posted Oct 16, 2009 11:03 AM CDT

(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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COMMENTS
Showing 3 of 8 comments
cochiserocks
Oct 18, 2009 12:21 PM CDT
I think its the consequence of folks wanting certainty in areas where there is none. Anything which will increase there sense of security, even if it is bullcr*p is attractive - especially with money - Madoff and his ilk trade on the security their supposed knowledge, connections and reputation bought them, But the truth is - the value of anything is olny as much as someone is willing to pay for it - ie, it is not the city or the traders who give value to an economy, or even a dollar bill - it is us. The minute we stop believing - the whole house of cards comes crashing down - Insider dealing is jst another way to try and increase certainty - Solution? Who knows - How about investing in something you believe in? Just a thought.
JoeQ
Oct 16, 2009 7:45 AM CDT
Sounds like just another show trial for the SEC like with Martha Stewart. It just makes it look like the SEC actually DOES something once in a while. It makes people forget how incompetent they were with Bernie Madoff for instance. The fact is they do just about jack squat when it comes to keeping the markets honest.
Spudsy
Oct 16, 2009 5:17 AM CDT
So if it is legal then how much money is needed for the info? I'm getting awfully close to the poverty level over here.

 
insider trading • SEC • hedge fund • conspiracy • bank fraud • criminal charges • Securities and Exchange Commission • Raj Rajaratnam • Galleon Group

 
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