By Allan Lengel
ticklethewire.com
Following an eight week trial, a Manhattan federal jury Wednesday morning convicted Raj Rajaratnam on 14 counts of conspiracy and securities fraud crimes stemming from his role in the largest hedge fund insider trading scheme in history, the U.S. Attorney’s Office announced.
Rajartnam, just another symbol of much what is wrong in the investment world, was managing member of GalleonManagement, LLC (“Galleon”), the General Partner of Galleon Management, L.P., and a portfolio manager for Galleon Technology Offshore, Ltd., and certain accounts of Galleon Diversified Fund, Ltd.Manhattan.
“Rajaratnam, once a high-flying billionaire and hedge fund manager, is now a convicted felon, 14 times over. Rajaratnam was among the best and the brightest – one of the most educated, successful and privileged professionals in the country,” U.S. Attorney Preet Bharara said in a statement.
“Yet like so many others recently, he let greed and corruption cause his undoing. The message today is clear — there are rules and there are laws, and they apply to everyone, no matter who you are or how much money you have.
“Unlawful insider trading should be offensive to everyone who believes in, and relies on, the market. It cheats the ordinary investor, victimizes the companies whose information is stolen, and is an affront not only to the fairness of the market, but the rule of law.
“In just over 18 months, this office has charged 47 individuals with insider trading crimes; Rajaratnam is the 35th person to be convicted. We will continue to pursue and prosecute those who believe they are both above the law and too smart to get caught.”
