Friday, October 26, 2012

Rajaratnam Wants Reversal




Galleon Group LLC co-founder Raj Rajaratnam is asking a federal appeals court to set aside his conviction for directing the biggest hedge fund insider trading scheme in U.S. history one day after a key source of his tips was sentenced to two years in prison, according to Businessweek.

The case against Rajaratnam, convicted last year of conspiracy and securities fraud, turned on the first significant use of government wiretaps in an insider-trading case. Those wiretaps are now at the center of his appeal. His lawyers argue the U.S., required to exhaust other avenues of inquiry before resorting to electronic surveillance, hid the existence of a related Securities and Exchange Commission investigation from a federal judge when seeking permission for a wiretap....

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