• Rajaratnam made $45 million in illicit profit from 2003 to March 2009 through insider trading.
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• April 04, 2013: Nice to see real journalism of great social merit

  More than 86 investigative journalists worked for more than a year to make sense of cache of 2.5 million files and report about secrets of off-shore tax havens:............Read

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• May 11, 2011: Rajaratnam, billionaire co- founder of Galleon Group convicted in inside-trade case- Rajaratnam faces a maximum term of more than 19 years in prison ............Read

• April 06, 2011: Indian American tipsters helped Rajaratnam make millions: FBI...................Read

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• Rajiv Goel testified that he tipped Rajaratnam about Intel board's decision- March 25, 2011:A former Indian American Intel executive has testified that he tipped hedge fund tycoon Raj Rajaratnam about Intel board's decision to invest $1 billion in a joint wireless venture ........Read

Rajat Gupta strikes back at US- Washington, March 19, 2011: Former Goldman Sachs Indian American director Rajat Gupta has sued the Securities and Exchange Commission (SEC), accusing the US regulator of "unfairly and unconstitutionally" connecting him to ..........Read

Anil Kumar Indian American star witness denies he was paid to get India business- New York, March 17, 2011: Anil Kumar, star Indian American prosecution witness, has testified that he was rarely consulted by hedge fund tycoon Raj Rajaratnam and ex-Goldman Sachs Group director Rajat Gupta about the launch of a private equity fund investing in South Asia.............Read

Rajaratnam's lawyers grill star Indian American witness-- Lawyers of hedge fund tycoon Raj Rajaratnam sought to discredit prosecution's star witness Indian American Anil Kumar calling him a money launderer and tax dodger who cut a plea deal to avoid criminal charges...............Read

Anil Kumar American executive tipped Rajaratnam for 5 years - New York, March 15, 2011 Anil Kumar, a former Indian American McKinsey & Co executive, has testified that he secretly provided billionaire hedge fund tycoon Raj Rajaratnam with inside information about upcoming deals from 2004 to 2009..........Read

Anil Kumar sold tips to Rajaratnam for $1.75 million- New York, March 11, 2011: Anil Kumar, a former Indian American partner of consulting firm McKinsey & Co has testified to leaking secrets about his clients to billionaire hedge fund tycoon Raj Rajaratnam in exchange for $1.75 million..........Read

UNITED STATES DISTRICT COUR - New York, March 09, 2011: UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK...............Read

NRI, U.S. Attorney Preet Bharara, uncover inside trading fraud- 14 people charged Thursday in a widening $53 million insider trading case.Last month with the arrests of Galleon Group founder and hedge fund operator Raj Rajaratnam and five others..........Read

U.S.-Sri Lankan Billionair, Two NRIs arrested for Insider Trading-
$25 Million in Illicit Gains

Raj Rajaratnam, billionaire, founder of the Galleon Group- up to $7 billion in assets, a major hedge fund

Raj tapped SIX high-ranking corporate executives and insiders into this ring to obtain confidential details about quarterly earnings and takeover activity.

5 others charged in $25M-plus insider trading case

U.S. Magistrate Judge Douglas F. Eaton set bail at $100 million to be secured by $20 million in collateral despite a request by prosecutors to deny bail.

He has to stay within 110 miles of New York City.

Read

Washington, D.C., Oct. 16, 2009 — The Securities and Exchange Commission today charged billionaire Raj Rajaratnam and his New York-based hedge fund advisory firm Galleon Management LP with engaging in a massive insider trading scheme that generated more than $25 million in illicit gains. The SEC also charged six others involved in the scheme, including senior executives at major companies IBM, Intel and McKinsey & Company.

The SEC’s complaint, filed in federal court in Manhattan, alleges that Rajaratnam tapped into his network of friends and close business associates to obtain insider tips and confidential information about corporate earnings or takeover activity at several companies, including Google, Hilton and Sun Microsystems. He then used the non-public information to illegally trade on behalf of Galleon.

“This complaint describes a web of fraud that has been unraveled,” said SEC Chairman Mary L. Schapiro.

“What we have uncovered in the trading activities of Raj Rajaratnam is that the secret of his success is not genius trading strategies. He is not the astute study of company fundamentals or marketplace trends that he is widely thought to be. Raj Rajaratnam is not a master of the universe, but rather a master of the rolodex,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “He cultivated a network of high-ranking corporate executives and insiders, and then tapped into this ring to obtain confidential details about quarterly earnings and takeover activity.”

In addition to Rajaratnam and Galleon, the SEC’s complaint charges:

Danielle Chiesi of New York, N.Y. — a portfolio manager at New Castle Funds.

Rajiv Goel of Los Altos, Calif. — a managing director at Intel Capital, an Intel subsidiary.

Anil Kumar of Saratoga, Calif. — a director at McKinsey & Company.

Mark Kurland of Mount Kisco, N.Y. — a Senior Managing Director and General Partner at New Castle.

Robert Moffat of Ridgefield, Conn. — a senior vice president at IBM.

New Castle Funds LLC — a New York-based hedge fund

According to the SEC’s complaint, Rajaratnam and Galleon traded on inside information about the following events or transactions:

An unnamed source, identified in the SEC’s complaint as Tipper A, obtained inside information about earnings announcements at Polycom and Google, as well as a takeover announcement of Hilton. Tipper A then allegedly provided this information to Rajaratnam, who used it to trade on behalf of Galleon.

Goel provided inside information to Rajaratnam about certain Intel quarterly earnings and a pending joint venture concerning Clearwire Corp., in which Intel had invested. Rajaratnam then used this information to trade on behalf of Galleon. As payback for Goel’s tips, Rajaratnam, or someone acting on his behalf, executed trades in Goel’s personal brokerage account based on inside information concerning Hilton and PeopleSupport, which resulted in nearly $250,000 in illicit profits for Goel.

Kumar obtained inside information about pending transactions involving AMD and two Abu Dhabi-based sovereign entities, which he shared with Rajaratnam. Rajaratnam then traded on the basis of this information on behalf of Galleon.

Chiesi obtained inside information from an executive at Akamai Technologies and traded on the information on behalf of a New Castle fund, netting a profit of approximately $2.4 million. Chiesi also passed on the inside information to Rajaratnam, who then traded on behalf of Galleon.

The SEC also alleges that Moffat provided inside information to Chiesi about Sun Microsystems. Moffat obtained the information when IBM was contemplating acquiring Sun. Chiesi then allegedly traded on the basis of this information on behalf of New Castle, making approximately $1 million in profits.

The SEC’s complaint charges each of the defendants with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and, except for Kumar and Moffat, violations of Section 17(a) of the Securities Act of 1933 and. The complaint seeks a final judgment permanently enjoining the defendants from future violations of the above provisions of the federal securities laws, ordering them to disgorge their ill-gotten gains plus prejudgment interest, and ordering them to pay financial penalties. The complaint also seeks to permanently prohibit Goel, Kumar and Moffat from acting as an officer or director of any registered public company.

The SEC acknowledges the assistance and cooperation of the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation.

The SEC’s investigation is continuing.

• Raj Rajaratnam, The Sri Lankan-born finance titan, is the Founder and Managing General Partner of The Galleon Group. He is a SriLankan born Tamilian. The Galleon Group manages over $5 billion, making it one of the largest hedge funds in the world.Prior to founding Galleon, Mr. Rajaratnam was President and Chief Operating Officer of Needham & Company, an investment bank focused on the technology and healthcare industries.
• He joined Needham in 1985 as an analyst in the electronics sector and became Managing Director of Investment Research in 1987. In 1989 he became Chief Operating Officer, and in 1991 was appointed President.Prior to joining the Needham & Company, Mr. Rajaratnam was a lending officer in the High Technology Group at Chase Manhattan Bank. He holds an MBA in Finance from The Wharton School, University of Pennsylvania.