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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