Hedge fund billionaire Rajaratnam indicted for inside trading |
Date: Wednesday, December 16, 2009
Author: The Economic Times
A US federal grand jury has indicted billionaire Raj Rajaratnam,
founder of Galleon hedge fund, in a multi-million-dollar Wall
Sri lankan-born Rajaratnam along with his co-conspirator Danielle Chiesi was
indicted yesterday on charges of using non-public information from company
executives to earn around 21 million dollars in illegal profits, according to
the 37-page indictment.
Rajaratnam, now on bail, has said he is innocent. The indictment
said Rajaratnam, Chiesi and others repeatedly traded on material, non-public
information pertaining to upcoming earnings forecasts, mergers, acquisitions, or
other business combinations (Inside Information).
Rajaratnam, who also allegedly provided financial support to a
charity linked to the Tamil Tigers terror group, closed down Galleon after he
and five others were arrested in October in what prosecutors said was "the
largest hedge fund insider trading case in history."
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