Rajaratnam, billionaire co- founder of Galleon Group convicted in inside-trade case
Prosecutors called the largest insider trading case ever involving hedge funds.
Rajaratnam faces a maximum term of more than 19 years in prison.
New York , May 11, 2011
Surinder Mehta
New York jury convicts hedge fund founder of conspiracy, fraud in massive insider trading case, on Wednesday, May 11, 2011, in New York
Wall Street titan, Raj Rajaratnam made a fortune by coaxing a crew of corporate tipsters to give him an illegal edge on blockbuster trades in technology and other stocks
NRI U.S. Attorney Preet Bharara said:
- The verdict sends a message that white collar laws apply to everyone, "no matter how much money you have.
- The defendant "was among the best and the brightest, one of the most educated, successful and privileged professionals in the country
- Yet, like so many others, he let greed and corruption cause his undoing."
- He was convicted of five conspiracy counts and nine securities fraud charges
- He made profits and avoided losses totaling more than $60 million from illegal tips.
- He will remain free on bail, though now with electronic monitoring, at least until his July 29 sentencing.
- Some of the people pleaded guilty and agreed to take the witness stand against the , Raj Rajaratnam, Sri Lanka-born defendant.
The judge ruled that Rajaratnam could remain free on $100 million bail as long as he was placed under house arrest at his Manhattan home.
Gupta, who has not been charged, has denied any wrongdoing.
