Raj Rajaratnam’s younger brother charged with insider trading
It seems like insider trading is the Rajaratnam family business.
March 22, 2013 at 06:38 AM
4 minute read
The original version of this story was published on Law.com
It seems like insider trading is the Rajaratnam family business.
A federal grand jury has indicted Rajarengan (“Rengan”) Rajaratnam—the 42-year-old younger brother of Galleon Group founder Rajat Rajaratnam, who is currently serving 11 years in prison for insider trading—on charges that he conspired in an insider-trading scheme while he worked as a hedge fund manager at Galleon Group.
The younger Rajaratnam is accused of conspiring with his brother on material nonpublic information about Clearwire Corp. and Advanced Micro Devices Inc. five years ago, Manhattan U.S. Attorney Preet Bharara said in a statement.
“Rengan Rajaratnam and his brother shared more than DNA,” Bharara said. “Along with his brother Raj, Rengan Rajaratnam was allegedly at the heart of an insider-trading scheme that swept up an unprecedented number of people in its web of corruption.”
Rengan also is charged with insider trading in a Securities and Exchange Commission civil suit. The agency claims the conspiracy began in 2006 and lasted to 2008, during which time he made more than $3 million in illegal gains.
Rengan faces one count of conspiracy to commit securities fraud and six counts of securities fraud. He has been living in Brazil, and the Wall Street Journal Law Blog says it's unclear whether he'll return to the U.S. to face the charges or face extradition proceedings.
Read Bloomberg for more about the charges against Rengan Rajaratnam.
For more InsideCounsel stories about corporate crime, read:
It seems like insider trading is the Rajaratnam family business.
A federal grand jury has indicted Rajarengan (“Rengan”) Rajaratnam—the 42-year-old younger brother of Galleon Group founder Rajat Rajaratnam, who is currently serving 11 years in prison for insider trading—on charges that he conspired in an insider-trading scheme while he worked as a hedge fund manager at Galleon Group.
The younger Rajaratnam is accused of conspiring with his brother on material nonpublic information about Clearwire Corp. and
“Rengan Rajaratnam and his brother shared more than DNA,” Bharara said. “Along with his brother Raj, Rengan Rajaratnam was allegedly at the heart of an insider-trading scheme that swept up an unprecedented number of people in its web of corruption.”
Rengan also is charged with insider trading in a Securities and Exchange Commission civil suit. The agency claims the conspiracy began in 2006 and lasted to 2008, during which time he made more than $3 million in illegal gains.
Rengan faces one count of conspiracy to commit securities fraud and six counts of securities fraud. He has been living in Brazil, and the Wall Street Journal Law Blog says it's unclear whether he'll return to the U.S. to face the charges or face extradition proceedings.
Read Bloomberg for more about the charges against Rengan Rajaratnam.
For more InsideCounsel stories about corporate crime, read:
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