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TUESDAY, FEBRUARY 9, 2010
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6

14 Charged as Galleon Insider Trading Case Widens

Feds finger Rajaratnam associates, lawyer

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(Newser) – Two former Galleon Group employees and a Ropes & Gray lawyer were among 14 people charged today in the expanding insider trading case surrounding the hedge fund founded by Raj Rajaratnam, who was busted last month. The traders and lawyers snuck around, communicating in code over throwaway cellphones, but had the FBI on their tails for more than 2 years, the New York Times reports.

The SEC puts the total profits from the scheme at $53 million, up from the $40 million the feds originally estimated, the AP reports. Asked whether the case was just the tip of a Wall Street iceberg, US Attorney Preet Bharara responded, "We don't have an answer to that but we aim to find out."

Danielle Chiesi is led in handcuffs from FBI headquarters in New York, Oct.16, 2009. Chiesi and four others, including Raj Rajaratnam, were arrested.
Danielle Chiesi is led in handcuffs from FBI headquarters in New York, Oct.16, 2009. Chiesi and four others, including Raj Rajaratnam, were arrested.   (AP Photo/ Louis Lanzano)
Raj Rajaratnam, billionaire founder of the Galleon Group, is led in handcuffs from FBI headquarters in New York, Oct.16, 2009. Rajaratnam was charged with insider trading.
Raj Rajaratnam, billionaire founder of the Galleon Group, is led in handcuffs from FBI headquarters in New York, Oct.16, 2009. Rajaratnam was charged with insider trading.   (AP Photo/ Louis Lanzano)
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6 comments
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alkaseltzersammich
Nov 5, 09 1:27 PM CST
Rajaratnam looks like he's been trading cheese burgers for stock tips. Reply
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attaboy
Nov 5, 09 1:29 PM CST
You mean ... people cheat to win?! Reply
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bewilderbeast1
Nov 5, 09 1:33 PM CST
Yeah. The Feds and the SEC "miss warning signs". And they "investigate" for years. And the bankers and wankers and thieves secrete away their ill-gotten gains "offshore", paying off lawyers, politicians, "regulators" & cops. Las Vegas casinos are straighter than the "fine gentlemen of the investment community"! And guess who is busy right now "re-writing" the laws to "protect the little guy"??? Those same thieves. Bend over and brace y'selves. Reply
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tomodachi
Nov 5, 09 1:42 PM CST
The SEC is about worthless... just another example in the long list of government agencies in need of reform.
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Reader587
Nov 5, 09 4:16 PM CST
Looks like a ready market for voice scramblers...high technology to the rescue. Reply
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