Appeals Court to Weigh Hedge Fund Recordings Fight

Date: Friday, February 12, 2010
Author: ABCNews

Court to hear appeal of order requiring defense to divulge wiretap evidence to SEC

A federal appeals court has blocked an order requiring defense attorneys in history's largest hedge fund insider trading case to release wiretap evidence to the Securities and Exchange Commission.

The federal appeals court in Manhattan on Thursday issued a temporary stay of a lower court judge's order requiring the lawyers turn the evidence over to federal regulators within a week. The court says it will consider the defense lawyers' appeal of the lower-court order.

Among defendants affected by the order is hedge fund operator Raj Rajaratnam (RAHJ rah-juh-RUHT'-nuhm). Rajaratnam, one of America's richest men, has been accused by prosecutors of making as much as $50 million through insider trading. He denies the charges.