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Billionaire among 6 nabbed in inside trading case
New York Times ^ | 10-16-2009

Posted on 10/16/2009 1:48:38 PM PDT by BAW

One of America's wealthiest men was among six hedge fund managers and corporate executives arrested Friday in a hedge fund insider trading case that prosecutors say generated more than $25 million in illegal profits and should be a wake-up call for Wall Street.

Raj Rajaratnam, a partner in Galleon Management and a portfolio manager for Galleon Group, a hedge fund with up to $7 billion in assets under management, was accused of conspiring with others to trade based on insider information about several publicly traded companies, including Google Inc.

U.S. Attorney Preet Bharara told a news conference it was the largest hedge fund case ever prosecuted and marked the first use of court-authorized wiretaps to capture conversations by suspects in an insider trading case.

He said the case should cause financial professionals considering insider trades in the future to wonder whether law enforcement is listening.

''Greed is not good,'' Bharara said. ''This case should be a wake-up call for Wall Street.''

Joseph Demarest Jr., the head of the New York FBI office, said it was clear that ''the 20 million dollars in illicit profits come at the expense of the average public investor.''

The Securities and Exchange Commission, which brought separate civil charges, said the scheme generated more than $25 million in illegal profits.

(Excerpt) Read more at nytimes.com ...


TOPICS: Front Page News; News/Current Events
KEYWORDS: billionaires; hedgefund; insidertrading; rajaratnam; wallstreet
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Another Obama contributor nabbed. Raj Rajaratnam donated $30,800 to President Obama's Victory Fund on 8/28/08.

http://www.campaignmoney.com/political/contributions/raj-rajaratnam.asp?cycle=08

1 posted on 10/16/2009 1:48:38 PM PDT by BAW
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To: BAW

And I would guess that ol’ Raj is a big, fat, flight risk.


2 posted on 10/16/2009 1:50:54 PM PDT by La Lydia
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To: BAW

Liberals = do as I say, not as I do


3 posted on 10/16/2009 1:50:59 PM PDT by 4rcane
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To: BAW
It is illegal to steal money from people when there are still perfectly good thieves left at Goldman Sachs.

They have a monopoly on stealing money.

4 posted on 10/16/2009 1:51:07 PM PDT by Lazamataz (DEFINITION: rac-ist (rA'sis't) 1. Anyone who disagrees with a liberal about any topic.)
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To: BAW

Raj Rajaratnam....

No doubt that he too was born in Hawaii - I’m sure.


5 posted on 10/16/2009 1:51:12 PM PDT by Responsibility2nd (I am Legend)
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To: BAW

I hope to see the Omaha Commie billionaire Warren Buffett snagged for insider trading someday.


6 posted on 10/16/2009 1:51:18 PM PDT by iopscusa (El Vaquero. (SC Lowcountry Cowboy))
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To: BAW

Only Goldman Sachs guys get to insider trade now.


7 posted on 10/16/2009 1:51:21 PM PDT by RatRipper (I'll ride a turtle to work every day before I buy anything from Government Motors.)
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To: BAW

How about a policy by which an informant gets a percentage reward of the malfeasance?


8 posted on 10/16/2009 1:53:11 PM PDT by tired1 (When the Devil eats you there's only one way out.)
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To: BAW

And, he was a BIG time contributor to Hilary. Wiki quotes a newspaper column that alleges he’s also the biggest single contributor the the Tamil Tigers. What a piece of work.


9 posted on 10/16/2009 1:54:50 PM PDT by OldDeckHand (No Socialized Medicine, No Way, No How, No Time)
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To: BAW

A manager at Intel Capital.
This guy is TOAST! Intel doesn’t mess around with things like this.


10 posted on 10/16/2009 1:58:19 PM PDT by Zathras
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To: tired1
Can that work?

I mean, aren't we usually talking about OPM (other peoples Money) anyways?

I should think the suckas investors should get the first whack.
11 posted on 10/16/2009 1:58:40 PM PDT by djf (Some people are proud. Some people are curious. I'm proud that I'm curious!!)
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To: djf

I want to see Soros’ name on one of these headlines.


12 posted on 10/16/2009 2:03:11 PM PDT by WVNan
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To: djf

I want to see Soros’ name on one of these headlines.


13 posted on 10/16/2009 2:03:27 PM PDT by WVNan
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To: Zathras

HA...it was THAT Intel.....hooooboy....


14 posted on 10/16/2009 2:08:53 PM PDT by goodnesswins (Isn't it great....we're heading for a Free Enterpriseless society.....)
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To: BAW

What a shock. It is like a broken record. Dodd, Obama, Clinton, Schumer, Dem Senatorial Committee bigtime recipients as usual of another rich sleazebag.

New York, NY 10022 CLINTON, HILLARY RODHAM (D)
President
HILLARY CLINTON FOR PRESIDENT $-2,300
general 08/28/08
Rajaratnam, Raj
New York, NY 10022
Galleon/CEO OBAMA, BARACK (D)
President
OBAMA VICTORY FUND $30,800
primary 08/28/08
Rajaratnam, Raj
New York, NY 10022
The Galleon Group/Founder CLINTON, HILLARY RODHAM (D)
President
HILLARY CLINTON FOR PRESIDENT $2,300
general 11/06/07
Rajaratnam, Raj
New York, NY 10022
The Galleon Group/Founder CLINTON, HILLARY RODHAM (D)
President
HILLARY CLINTON FOR PRESIDENT $2,300
primary 11/06/07
RAJARATNAM, RAJ MR
NEW YORK, NY 10022
GALLEAN GRAY/CEO CANTWELL, MARIA (D)
Senate - WA
FRIENDS OF MARIA $2,000
general 10/31/06
Rajaratnam, Raj
New York, NY 10022
The Galleon Group/Managing Director MENENDEZ, ROBERT (D)
Senate - NJ
NEW JERSEY DEMOCRATIC VICTORY $10,000
primary 10/18/06
Rajaratnam, Raj
New York, NY 10022
The Galleon Group/Managing Director MENENDEZ, ROBERT (D)
Senate - NJ
NEW JERSEY DEMOCRATIC VICTORY $2,100
primary 10/18/06
RAJARATNAM, RAJ
NEW YORK, NY 10022
GALLEON GRAY/CEO
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $26,700
primary 08/10/06
RAJARATNAM, RAJ
NEW YORK, NY 10022
GALLEON GRAY/CEO CLINTON, HILLARY RODHAM (D)
Senate - NY
FRIENDS OF HILLARY $2,100
general 11/12/05
RAJARATNAM, RAJ
NEW YORK, NY 10022
GALLEON GRAY/CEO CLINTON, HILLARY RODHAM (D)
Senate - NY
FRIENDS OF HILLARY $2,100
primary 11/12/05
RAJARATNAM, RAJ
NEW YORK, NY 10022
GALLEON MANAGEMENT SCHUMER, CHARLES E (D)
Senate - NY
FRIENDS OF SCHUMER $1,000
general 10/21/04
Rajaratnam, Raj
New York, NY 10022
The Galleon Group/Investment Banker KHANNA, ROHIT (D)
House (CA 12)
KHANNA FOR CONGRESS $2,000
primary 02/11/04
Rajaratnam, Raj
New York, NY 10022
Galleon Group/Investments
VOLUNTEER PAC $5,000
primary 11/11/03
RAJARATNAM, RAJ
NEW YORK, NY 10022
GALLEON MANAGEMENT SCHUMER, CHARLES E (D)
Senate - NY
FRIENDS OF SCHUMER $1,000
primary 02/07/01
RAJARATNAM, RAJ
NEW YORK, NY 10022
NEEDHAM CAPITAL
NATIONAL VENTURE CAPITAL ASSOCIATION VENTUREPAC $1,000
primary 10/01/95


15 posted on 10/16/2009 2:17:01 PM PDT by Moorka
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To: BAW

This is VERY BIG!

Executives charged included Robert Moffatt, senior vice president and executive in IBM’s systems and technology group, and Rajiv Goel, who is Intel treasury’s managing director of investments. The SEC filed a complaint in the U.S. District Court for the Southern District of New York.

Moffatt and Goel allegedly provided insider information about companies including Sun Microsystems and Intel.

Other individuals charged include Raj Rajaratnam, a portfolio manager with hedge fund Galleon Group, who gained close to $25 million in illegal profits, according to the SEC. Rajaratnam is considered the 559th richest man in the world according to Forbes magazine. Others charged in the complaint include Anil Kumar, a director at McKinsey, and Danielle Chiesi and Mark Kurland of New Castle Funds.

“Raj Rajaratnam is not a master of the universe, but rather a master of the rolodex,” said Robert Khuzami, director of the SEC’s division of enforcement. “He cultivated a network of high-ranking corporate executives and insiders, and then tapped into this ring to obtain confidential details about quarterly earnings and takeover activity,” Khuzami said.

Goel allegedly provided insider tips to Rajaratnam about certain Intel quarterly earnings and a pending joint venture concerning Clearwire, in which Intel has invested, the SEC said. Based on the insider information, Rajaratnam executed trades on Galleon’s behalf. The tips netted Goel close to $250,000 in illicit profits after Rajaratnam executed trades for Goel’s personal brokerage account based on confidential tips concerning Hilton and PeopleSupport.


16 posted on 10/16/2009 2:30:50 PM PDT by Zathras
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To: BAW

I’m sure he donated to all of the great liberal causes.


17 posted on 10/16/2009 2:30:53 PM PDT by unixfox (The 13th Amendment Abolished Slavery, The 16th Amendment Reinstated It !)
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To: WVNan
I want to see Soros’ name on one of these headlines.

I'd rather see his head on a stick. What a pathetic excuse for a human.

18 posted on 10/16/2009 2:31:55 PM PDT by unixfox (The 13th Amendment Abolished Slavery, The 16th Amendment Reinstated It !)
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To: BAW

Other than being just another inside trader (like they’re rare or something)

Under the bus you go.


19 posted on 10/16/2009 2:40:34 PM PDT by wolfcreek (http://www.youtube.com/watch?v=Lsd7DGqVSIc)
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To: WVNan; bray; Danae

How’s this for a connection to Soros!

http://www.muckety.com/Query?graph=MucketyMap&SearchResult=158682&SearchResult=141038


20 posted on 10/16/2009 2:44:08 PM PDT by Zathras
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