Tuesday, June 4, 2013

Raj Rajaratnam’s Brother Had Plea Talks Over Insider Charges



Rengan Rajaratnam, younger brother of imprisoned hedge-fund founder Raj Rajaratnam, has been in plea to resolve his criminal insider-trading prosecution, the U.S. said.  Rajaratnam, was indicted in March and accused of conspiring with his brother to trade on material nonpublic information about Clearwire Corp. and Advanced Micro Devices.  The U.S. charged him with one count of conspiracy to commit securities fraud and six counts of securities fraud. Conspiracy carries a maximum five-year prison sentence, fraud a 20-year maximum.

Prosecutors alleged that Rengan Rajaratnam, while working as a fund manager at Galleon Group LLC, made almost $1.2 million from trades that occurred in 2008 based on tips provided by his brother and his Rolodex of insiders. He was implicated during his brother’s trial, where wiretapped conversations between the two men were played in court….


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