March 8, 2011 |
A criminal trial starting this week is shaping up as a classic story of hedge funds gone bad, but the topic ? stock trading ? no longer typifies the increasingly risky investments of the fast-evolving hedge-fund world. The case against Raj Rajaratnam, founder of Galleon Group, promises the staples ? major companies, prestigious executives, incriminating wiretaps, informants and secret phone calls providing hot tips on stocks. Although this story may resonate with the public's perception of what hedge funds do, it is at odds with the complex and high-tech direction hedge funds have been headed for the last two decades.
October 22, 2009 |
The hedge-fund firm at the center of the biggest insider-trading scandal to erupt on Wall Street in years is taking steps to close up shop. Galleon Group, founded by billionaire Raj Rajaratnam, who was arrested last week on suspicion of running a widespread insider-trading scheme, told investors and employees in a letter Wednesday that it planned to liquidate its hedge funds. The company also has been approached by outside parties interested in buying it, according to a person familiar with the matter.
November 3, 2009 |
Hector Ruiz, former chief executive of chip maker Advanced Micro Devices Inc., is leaving his job with a spinoff company after a published report linking him to the Galleon Group insider trading case. GlobalFoundries Inc., also a chip manufacturer, says Ruiz will take a voluntary leave from his position as chairman before officially resigning Jan. 4. The Wall Street Journal reported last week that Ruiz was the executive fingered by the U.S. attorney's office in Manhattan for leaking insider information to Danielle Chiesi, one of six people arrested in the Galleon case.
June 15, 2012 |
A jury has convicted former Goldman Sachs director Rajat Gupta in his high-profile insider-trading case in New York. A federal jury had been weighing Gupta's fate for two days. The jury of eight women and four men found Gupta guilty of four criminal counts in a wide government push against insider trading. Gupta was found guilty of three counts of securities fraud and one count of conspiracy for leaking stock tips to Raj Rajaratnam, head of the Galleon Group hedge fund. He was acquitted on two counts of securities fraud.
June 16, 2012 |
NEW YORK — The federal government took down the biggest Wall Streeter yet in its battle against insider trading: Rajat Gupta, a former director of Goldman Sachs who once headed powerful consulting firm McKinsey & Co. Gupta's conviction on securities fraud and conspiracy charges in federal court in Manhattan on Friday may embolden government efforts to weed out white-collar corruption using wiretaps, tools traditionally used against mobsters and...
March 21, 2013 |
NEW YORK -- The brother of one of Wall Street's most notorious crooks has been accused of insider trading himself. Federal authorities on Thursday accused Rajarengan, or "Rengan," Rajaratnam, whose older brother Raj was convicted in 2011 of running a vast network of illicit information-sharing on Wall Street, of engaging in the same cheating in financial markets. "As alleged, Rengan Rajaratnam and his brother shared more than DNA, they also shared a penchant for insider trading," Preet Bharara, the U.S. attorney in Manhattan, said in a statement.