May 11, 2011

Rajaratnam found guilty of insider trading


Raj Rajaratnam, the billionaire founder of hedge-fund firm Galleon Group LLC, was found guilty of 14 counts of conspiracy and securities fraud Wednesday, handing the U.S. government a big victory in a multiyear investigation into insider trading.

Count 1. Conspiracy to commit securities fraud involving inside information about companies including Advanced Micro Devices , Goldman Sachs and Marvell Technology Group

Count 2. Conspiracy to commit securities fraud involving an alleged insider-trading scheme between Rajaratnam and Roomy Khan.

Count 3. Conspiracy to commit securities fraud involving an alleged insider-trading scheme between Rajaratnam and former Intel Corp. Rajiv Goel.

Count 4. Conspiracy to commit securities fraud involving an alleged insider-trading scheme between Rajaratnam and former McKinsey & Co. senior partner Anil Kumar.

Count 5. Conspiracy to commit securities fraud involving an alleged insider-trading scheme between Rajaratnam and Danielle Chiesi of Bear Stearns hedge fund New Castle Partners.

Count 6. Securities fraud involving Galleon trading of Clearwire Corp. shares March 24, 2008.

Count 7. Securities fraud involving trading of Galleon Clearwire shares on March 25, 2008.

Count 8. Securities fraud involving Galleon trading of Akamai shares on July 25, 2008.

Count 9. Securities fraud involving Galleon trading of Akamai shares on July 29, 2008.

Count 10. Securities fraud involving Galleon trading of Akamai shares on July 30, 2008.

Count 11. Securities fraud involving Rajaratnam trading of PeopleSupport shares on July 28, 2008.

Count 12. Securities fraud involving Rajaratnam trading of PeopleSupport shares on Oct. 7, 2008.

Count 13. Securities fraud involving Galleon transactions in securities of ATI Technologies in 2006.

Count 14. Securities fraud involving Galleon transactions in securities of Intel in about April 2007.


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