Galleon Founder Puts Up Apt. To Secure Record-Setting Bail

Date: Friday, October 23, 2009
Author: FINalternatives.com

Accused insider-trader Raj Rajaratnam was back in federal court yesterday, signing the paperwork for his record $100 million bail.

The Galleon Group founder, who faces 11 charges of conspiracy and securities fraud in an alleged $20 million insider-trading scam, secured the bond with his Manhattan apartment, in the tony Sutton Place development. Rajaratnam, who was freed on Saturday after a night in jail, had until today to offer a $20 million guarantee on his bond.

Rajaratnam’s five co-defendants in the case, who include a pair of former Bear Stearns hedge fund veterans, have also posted bail.

Rajaratnam was arrested last Friday, accused of being part of an insider-trading circle. Since then, Galleon, which has more than $3 billion in assets under management, has announced plans to liquidate its hedge funds.