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Feds: NY Hedge Fund Boss Funded Terror

Donations were funneled to Tamil Tigers

By Nick McMaster,  Newser Staff

Posted Oct 19, 2009 1:20 AM CDT
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(Newser) – A hedge-fund manager busted for insider trading has been contributing money to a Sri Lankan terrorist group, according to FBI agents. Raj Rajaratnam came under scrutiny in a federal probe into the Tamil Rehabilitation Organization, a charity which was charged with funneling money to the Liberation Tigers of Tamil Eelam, a violent separatist group defeated by the Sri Lankan government last spring. Rajaratnam donated $2 million to TRO USA, which promptly wired the funds to Sri Lankan accounts, according to authorities.

The hedge-fund manager also created a charity, Tsunami Relief, which gave another $1.5 million to the TRO, ostensibly to help reconstruction efforts after the 2004 tsunami, the Wall Street Journal reports. It's not the first time Rajaratnam’s Galleon Group has been targeted by authorities. It once paid $2 million to the SEC to settle a claim that it was practicing an illegal form of short-selling.

Raj Rajaratnam, billionaire founder of the Galleon Group, is led in handcuffs from FBI headquarters.
Raj Rajaratnam, billionaire founder of the Galleon Group, is led in handcuffs from FBI headquarters.   (AP Photo/ Louis Lanzano)
Raj Rajaratnam, billionaire founder of the Galleon Group, a major hedge fund, is led in handcuffs from FBI headquarters in New York.
Raj Rajaratnam, billionaire founder of the Galleon Group, a major hedge fund, is led in handcuffs from FBI headquarters in New York.   (AP Photo/ Louis Lanzano)
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COMMENTS
Showing 3 of 7 comments
my-name-here
Oct 19, 2009 12:21 PM CDT
According to Forbes magazine he is the 236 richest American with a net worth of @1.8 billion. According to the FBI--"LTTE has perfected the use of suicide bombers, invented the suicide belt, pioneered the use of women in suicide attacks, murdered some 4,000 people in the past two years alone, and assassinated two world leaders—the only terrorist organization to do so." I'm guessing the Indians would like him to face charges as well. Isn't this treason-(they were designated a "Foreign terrorist organization" by the State department -10/08/09) -aiding and abetting an enemy of the U.S.?
Spudsy
Oct 19, 2009 8:56 AM CDT
Agreed. Take the cash, send him back.
JoeQ
Oct 19, 2009 8:45 AM CDT
Authroties?

 
terrorism • tsunami • insider trading • Sri Lanka • Tamil Tigers • SEC • Raj Rajaratnam

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