|  | | 2009 News and Press Releases | | |
HEADLINE NEWS:
Rajaratnam SEC Insider Trading Trial Set for Aug. 2
David Glovin
Bloomberg. November 4, 2009
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EXCERPT: Galleon Management LP founder Raj Rajaratnam’s trial in the U.S. Securities and Exchange Commission’s insider trading lawsuit will begin August 2, U.S. District Judge Jed Rakoff ruled. “That is a firm and fixed date,” Rakoff said. “An important lawsuit has been brought.” Last week Rakoff said he wanted the lawsuit to be ready for trial by April 5 and ordered the parties to give him a written report on their “agreements or disagreements” regarding the pre-trial exchange of information. Separately, Rajaratnam and five others face criminal charges that they made millions of dollars by trading on inside information. Rajaratnam wasn’t in court today. Also named in the SEC’s case are Rajaratnam’s alleged accomplices in the criminal case: Rajiv Goel, who worked at Intel Capital; Anil Kumar, who worked as a director at McKinsey & Co.; former International Business Machines Corp. executive Robert Moffat; Mark Kurland, the co-founder of New Castle Funds LLC, a former Bear Stearns Cos. hedge fund; Danielle Chiesi, a former consultant at New Castle; and New Castle itself. Galleon, started by Rajaratnam in 1997, had more than $2.6 billion under management in March, the SEC said. New Castle had $971 million under management in April, the SEC said. Rajaratnam, Galleon’s managing partner, and his co- defendants have denied wrongdoing. ‘Widespread and Repeated’ Like the criminal case, the SEC case focuses on what the agency said was “widespread and repeated insider trading” at Galleon and New Castle. Leaks about quarterly earnings announcements, takeovers and material contracts came from Goel, Kumar, Moffat, and other executives and consultants who weren’t identified in the complaint, the SEC said. The scheme generated more than $25 million in illegal proceeds from trading involving about 10 companies including Google Inc., Intel, and Hilton Hotels Corp., the SEC alleged. |
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