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
- 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
U.S. Attorney Preet Bharara, uncover inside trading
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
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.
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
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
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.