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Raj Rajaratnam

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BUSINESS
March 21, 2013 | By Andrew Tangel
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.
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OPINION
July 30, 2013 | By Paul H. Robinson
The U.S. attorney in Manhattan last week announced the criminal indictment of hedge fund SAC Capital Advisors. Some may wonder what is to be gained by the effort and expense. Unlike the case of hedge fund mogul Raj Rajaratnam, who went to prison in 2011 after his conviction for insider trading, here there is no body to jail. And the fine that might be imposed could be obtained more easily in a civil suit, where the standard of proof is lower. Indeed, the cost of the criminal prosecution may be duplicative since civil suits have been won for some of the illegal transactions, and more are in the works.
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BUSINESS
October 14, 2011 | By Nathaniel Popper and Walter Hamilton, Los Angeles Times
Hedge-fund magnate Raj Rajaratnam got the longest-ever prison sentence for insider trading, but the government may not have landed a knockout blow against the pervasive Wall Street crime. Rajaratnam's 11-year term far surpasses those dished out to past Wall Street kingpins accused of swapping illegal information, such as Ivan Boesky. And it will keep Rajaratnam, 54, incarcerated until he's old enough to collect Social Security. But some experts said the government failed in its broader effort to establish insider trading as an especially egregious crime warranting the harshest-possible white-collar sentence.
BUSINESS
July 30, 2013 | By Andrew Tangel
ROCKVILLE, Md. - Cameron Funkhouser heads a spy agency that most Americans never knew existed. His operation is based in a nondescript beige building in the leafy suburbs outside Washington, a short drive from the National Security Agency, the CIA and the FBI. Inside, dozens of analysts pore over a torrent of sophisticated data that has become a front line in an aggressive government battle. Red flags pop up on their computers when something seems amiss, then investigators get to work tracking down leads.
BUSINESS
May 12, 2011 | By Nathaniel Popper and Walter Hamilton, Los Angeles Times
A resounding guilty verdict in the insider-trading trial of a high-flying hedge fund magnate represents the biggest victory against Wall Street wrongdoing in two decades — and could invigorate the government's effort to stamp out a crime that's existed for as long as stocks have changed hands. To win the conviction of Raj Rajaratnam, prosecutors relied on extensive electronic wiretaps, marking the first time illegal trading has been pursued with a tool more commonly employed against organized crime.
BUSINESS
October 27, 2011 | By Nathaniel Popper and Stuart Pfeifer
Former Goldman Sachs director Rajat K. Gupta was arrested by FBI agents in New York on charges that he leaked corporate secrets to a hedge fund manager, making him the highest-ranking corporate executive implicated in the government's long-running crackdown on insider trading. Gupta, who was also a director of Procter & Gamble, is accused of supplying inside information about both companies to Galleon Group hedge fund founder Raj Rajaratnam, who used the information to make illegal, profitable trades and avoid millions of dollars of losses, prosecutors said.
BUSINESS
May 22, 2012 | By Andrew Tangel, Los Angeles Times
NEW YORK Shortly after Goldman Sachs Group Inc.'s board learned of famed investor Warren Buffett's $5-billion lifeline at the height of the financial crisis, then-director Rajat Gupta phoned hedge-fund manager Raj Rajaratnam. Rajaratnam, a federal prosecutor said Monday, then used that information when he snapped up Goldman stock before the deal was announced in September 2008. Prosecutors said Gupta helped Rajaratnam make $1 million in just six minutes with the help of illegal inside information.
OPINION
May 13, 2011
Federal prosecutors scored one of their biggest insider-trading convictions this week when a jury found billionaire hedge-fund manager Raj Rajaratnam guilty on 14 counts of securities fraud and conspiracy. This case won't satisfy the nation's hunger to hold Wall Street accountable for the financial industry collapse that triggered a deep recession and cost millions of people their jobs. But it's important in its own right for the message it sends about the day-to-day business of investors.
BUSINESS
March 8, 2011 | By Nathaniel Popper, Los Angeles Times
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.
BUSINESS
March 2, 2011 | By Nathaniel Popper, Los Angeles Times
Rajat Gupta's storied business career is a collection of gold-plated milestones: Harvard Business School, the top spot at consulting giant McKinsey & Co., seats on the boards of Goldman Sachs, Procter & Gamble and American Airlines. But the Securities and Exchange Commission said Tuesday that Gupta, 62, used his corporate board positions to supply confidential information to his friend Raj Rajaratnam, a hedge fund manager who is set to go on trial next week on insider trading allegations.
BUSINESS
July 19, 2013 | By Ravi Mattu
In April 2004, Rajat Gupta gave a talk at Columbia University. One student asked the former global managing director of McKinsey & Co. for his views on money and wealth creation. "Yeah, I am driven by money....  However much you say that you will not fall into the trap of it, you do fall into the trap of it," he said. Those words would prove prescient. Eight years after he uttered them, Gupta was convicted by a New York court of insider trading, of leaking privileged information gleaned from his position on the board of Goldman Sachs to Raj Rajaratnam, founder of the hedge fund Galleon.
BUSINESS
March 29, 2013 | By Andrew Tangel, Los Angeles Times
NEW YORK - Preet Bharara, the man dubbed the new sheriff of Wall Street, notched another arrest in the government's vast insider trading probe. This time the top federal prosecutor in Manhattan nabbed a top portfolio manager at one of America's biggest hedge funds. SAC Capital Advisors' Michael Steinberg was led out of his Park Avenue apartment building in handcuffs early Friday morning. It's a major arrest at a fund that has long drawn government scrutiny. Bharara, 44, has carved out a reputation for being a tough prosecutor who has overseen some of the most high-profile white-collar criminal cases since the 1980s.
BUSINESS
March 21, 2013 | By Andrew Tangel
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.
BUSINESS
March 16, 2013 | Andrew Tangel
Two affiliates of embattled hedge fund SAC Capital Advisors agreed to pay $614 million to settle insider-trading charges in what regulators said was the largest-ever penalty for such cases. Billionaire Steven A. Cohen, who founded the company, was not accused of any wrongdoing and not named in the settlements. The case has fueled speculation that Cohen may be the ultimate target of the investigation by the Securities and Exchange Commission and federal prosecutors. The SEC's deal dwarfs the $400-million fine the agency slapped on junk-bond king Michael Milken, who came to exemplify the rampant sharing of illicit information on Wall Street during the 1980s.
HEALTH
December 4, 2012 | By Andrew Tangel
NEW YORK -- Rajat Gupta, a former Goldman Sachs director a found guilty of insider-trading charges in October, will try to remain free while he appeals his conviction.  Gupta's bid to stay free beyond his Jan. 8 surrender date is scheduled to be heard Tuesday by the U.S. 2nd Circuit Court of Appeals. If Gupta begins serving his two-year sentence and his appeal were eventually successful, he could conceivably be freed or face a new trial after serving much of his sentence. In court papers, Gupta's lawyers laid out what they claimed were judicial errors in the case, and concluded: "Gupta was denied the opportunity to present the best evidence of his innocence. These errors pervaded the whole trial.
BUSINESS
October 25, 2012 | By Andrew Tangel, Los Angeles Times
NEW YORK - Former Goldman Sachs director Rajat Gupta will spend two years behind bars for sharing secret company information with a hedge fund manager, becoming the highest-profile Wall Street figure heading to prison for insider trading. Gupta once headed the prestigious consulting firm McKinsey & Co. and also served as a director to Procter & Gamble. His philanthropy around the globe has also been stunning, as Microsoft co-founder Bill Gates, former United Nations secretary general Kofi Annan and scores of others told the court in letters.
BUSINESS
June 15, 2012 | By Andrew Tangel
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.
BUSINESS
January 19, 2012 | By Nathaniel Popper, Walter Hamilton and Matt Stevens, Los Angeles Times
The arrest of a South Pasadena investment manager on insider trading charges extended the government's sweeping investigation beyond Wall Street into a remote outpost of the investment world. Danny Kuo, a technology expert at Whittier Trust Co., was taken into custody by FBI agents in the cold pre-dawn hours Wednesday at his two-story Spanish-style home in a residential neighborhood. Unlike the dozens of high-level hedge fund managers who have been arrested in the government's four-year crackdown on illicit trading, Kuo, 36, toiled at a mid-size 77-year-old firm that keeps a low profile and caters to rich families.
BUSINESS
October 24, 2012 | By Andrew Tangel
NEW YORK -- Rajat Gupta, among the world's most prominent businessmen, may spend years in prison for his role in the Galleon Group insider-trading scheme. Or, Gupta may perform community service as punishment after a judge sentences him Wednesday on three counts of securities fraud and another of conspiracy. A jury convicted him in June. His lawyers have proposed sentencing him to work for a homeless youth shelter in New York or in Rwanda, helping improve health care and develop agriculture in rural areas.
BUSINESS
June 16, 2012 | By Andrew Tangel, Los Angeles Times
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...
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