Raj Rajaratnam Charged with Insider Trading at Galleon Hedge Fund Group
Posted on | October 16, 2009 | 1 Comment
Raj Rajaratnam and five others have been charged with insider trading at the Galleon Hedge Fund Group. There was also insider trading at New Castle and Intel Capital hedge funds as well. Some of the stocks that took place within the $20 million insider trading case include IBM, AMD, and Sun Microsystems. Other companies that are listed in the compliant are Google, Polycom and HIlton Hotels.
Among the criminal complaints, one accuses Raj Rajaratnam of conspiring with Intel Capital employees Rajiv Goel and Anil Kumer. The conspiring took place from early 2006 through mid 2008. Currently, Galleon Group has up to $7 billion under management while Intel Capital is an investment division of Intel Corp.
Rajaratnam founded the New York hedge fund group Galleon Group and is estimated to be worth $1.3 billion. The current allegations put Rajaratnam responsible for many insider trades at Galleon funds where he acted on insider information or passed tips along to other traders. In one particular situation, Rajaratnam received insider information about Polycom, Hilton Hotels and Google and used the information to make improper trades. By using this insider information, Galleon hedge fund made more than $12.7 million.
This news was originally broken by David Faber of CNBC.
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Author: Jeremy North
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October 16th, 2009 @ 3:47 pm
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