Billionaire Rajaratnam Faces New Charges in Insider Trading Scam


New York, Feb 11 (IANS) Galleon Group founder and billionaire Raj Rajaratnam, accused of masterminding the largest insider-trading scam in US history, faces an additional 40 years in prison under a new indictment.

Federal prosecutors added two new securities fraud charges against the Tamil Sri Lankan billionaire in an indictment filed in a Manhattan federal court Wednesday.

The superseding indictment also strengthens several of the other 17 charges against the former hedge fund chief, increases the amount of ill-gotten gains he allegedly netted and lengthens the time frame of the scheme.

If convicted of all of the charges, Rajaratnam, who has pleaded not guilty, could face as much as 185 years in prison.

Prosecutors are also demanding a total of $49 million in forfeitures from both Rajaratnam and his co-defendant, former New Castle Partners portfolio manager Danielle Chiesi. In the earlier indictment, prosecutors were seeking just $20.8 million.

Chiesi does not face any new counts in the indictment, but several of the 17 already levelled against her were amended with new allegations.

The new counts and allegations stem from two of the nine guilty pleas won by prosecutors in a case that has netted 21 people.

Two Indian-American executives, Anil Kumar, formerly of McKinsey & Co, and Rajiv Goel, formerly of Intel, both admitted to passing confidential information to Rajaratnam. Kumar alleges that Rajaratnam paid him as much as $2 million for the tips.

  

Top Stories


Leave a Comment

Title: Billionaire Rajaratnam Faces New Charges in Insider Trading Scam



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.