Billionaire Galleon Founder Charged with Insider Trading

October 16th, 2009
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Raj Rajaratnam, the founder of hedge fund Galleon Management, was arrested Friday and charged with securities fraud and conspiracy to commit securities fraud, according to the Wall Street Journal. Mr. Rajaratnam, the 236th richest American on Forbes’ 2009 list, is accused of taking part in an insider trading scheme that generated more than $25 million in illegal profits.

According to US Attorney Preet Bharara, this is first insider trading case being prosecuted that involves court-authorized wiretaps. In addition to Mr. Rajaratnam, five other individuals were charged, including executives from IBM, Intel, and McKinsey & Co.

Mr. Rajaratnam was released on $100 million bail and has been ordered to stay within 110 miles of New York City.
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Galleon Management*
Related People: Gary Rosenbach; Raj Rajaratnam
Related Entities: Galleon Admiral's; Galleon Buccaneers; Galleon Captains; Galleon Communication; Galleon Diversified; Galleon Explorers; Galleon Group; Galleon Healthcare; Galleon Technology
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News

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