Why did the Securities and Exchange Commission charged billionaire Raj Rajaratnam?
After weeks of speculation on Wall Street, prosecutors brought a fresh round of insider trading charges on Thursday that left no doubt they were aiming at hedge funds and the networks of market gossip that are endemic on trading floors. The charges, against 14 money managers, lawyers and other investors, followed the arrest last month of a hedge fund billionaire, Raj Rajaratnam, on charges that he had profited from inside information. In the latest criminal complaints, prosecutors described a network that used prepaid cellphones to avoid detection, and that was pierced in part through surveillance and wiretaps. One law enforcement official, speaking on condition of anonymity because the investigation is continuing, said the authorities expected to make more arrests in the coming weeks. The investigation is part of a broad Federal Bureau of Investigation push into crimes related to hedge funds, including the addition of a third securities fraud unit in New York, the official said. And f
SEC Charges Billionaire Hedge Fund Manager Raj Rajaratnam with Insider Trading. http://www.sec.gov/news/press/2009/2009-221.htm SEC Charges Billionaire Hedge Fund Manager Raj Rajaratnam with Insider Trading High-Ranking Corporate Executives Also Charged in Scheme That Generated More Than $25 Million in Illicit Gains FOR IMMEDIATE RELEASE 2009-221 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
The Securities and Exchange Commission charged billionaire Raj Rajaratnam and his New York-based hedge fund advisory firm Galleon Management LP, last October, 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. Sources: http://www.sec.gov/news/press/2009/2009-221.
