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Galleon's Rajaratnam Charged in Fraud Case

Alleged inside-trader accused of conspiracy, securities fraud

By Nick McMaster,  Newser Staff

Posted Dec 15, 2009 4:47 PM CST
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(Newser) – Raj Rajaratnam was charged with five counts of conspiracy and six counts of securities fraud today, the first criminal charges related to allegations of insider trading at his Galleon group hedge fund. Danielle Chiesi, who prosecutors say was one of Rajaratnam's illicit collaborators, was hit with three counts of conspiracy and seven counts of securities fraud, reports the Wall Street Journal.

Both defendants already face numerous charges of securities and wire fraud as part of an SEC complaint. The indictment today is the final step before the Justice Department moves the case forward in court, the New York Times notes. Rajaratnam is currently free on $100 million bail, and he's putting together a top-flight legal team.

In this Oct. 16, 2009 file photo, Raj Rajaratnam, billionaire founder of the Galleon Group, a major hedge fund, is led in handcuffs from FBI headquarters in New York.
In this Oct. 16, 2009 file photo, 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)
Raj Rajaratnam leaves court in New York, Thursday, Nov. 5, 2009.
Raj Rajaratnam leaves court in New York, Thursday, Nov. 5, 2009.   (AP Photo/Seth Wenig)
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COMMENTS
Showing 3 of 4 comments
JoeQ
Dec 16, 2009 3:39 AM CST
His philanthropies are what got him in trouble; some of them were political. Going after him for insider trading is just a catch-all. Makes the Fed look competent. Helps to make people forget Bernie Madoff, the bank bailouts, etc.
Scrub
Dec 15, 2009 11:01 AM CST
$100,000,000 bail and he made it!
Netstorm2k10
Dec 15, 2009 10:54 AM CST
Or maybe he's just a scapegoat to draw attention away from the non-ethnic good ole boy traders doing exactly the same thing.

 
Department of Justice • insider trading • SEC • defendant • Raj Rajaratnam

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