Raj Rajaratnam, Founder of $3 Billion Galleon Group Hedge Fund, Arrested

Discussion in 'Wall St. News' started by Surdo, Oct 16, 2009.

  1. Surdo


    Hedge Fund Executive Is Charged With Fraud
    October 16, 2009 , 10:27 am
    The founder of the Galleon Group, a big New York hedge fund, was charged on Friday with insider trading in the stocks of several companies, including Hilton Hotels and Google, earning millions of dollars in the process.

    Federal prosecutors for the Southern District of New York accused Raj Rajaratnam with illegally obtaining and trading on information on these companies, which also included AMD and Clearwire. He was charged with four counts of conspiracy and eight counts of securities fraud.

    Others named in the complaint include an executive from Intel Capital, the venture capital arm of Intel, and one from McKinsey & Company.

  2. Surdo


    Prosecutors and the FBI have announced that they have charges against several people involved with the Galleon Group hedge fund, including founder Raj Rajaratnam. Galleon is a major hedge hund player known for its investment in technology stocks.

    Most notably, the government is filing criminal charges related to insider trading in a number of securities going back to 2006. So this is much more than a standard SEC civil charge.

    Rajaratnam was arrested in his apartment last night.

    The Galleon Group has something like $3 billion under management.

    The news was broken by David Faber at CNBC.

  3. Wow, i must have missed this on CNBC.. Raj Rajaratnam is very well known in NYC. Haven't read through the entire complaint, but this has the potential to be huge news.
  4. I don't believe it!!
  5. Shut my mouth!! You are right!!!
  6. It is sad when having a $3 billion fund, you will still throw it away willingly for something that will probably cost you everything
  7. Great news flash surdo, props to you! :)

    Greed is one of the unholiest of vices known to man. It feels so good when it comes, and the seductive feeling of love&power that comes from it delude you into thinking that you are invulnerable, and cannot be taken down.

    Truth to tell, we are all just one degreee of seperation from these guys, and may very well find ourselves facing the same thing one day.
  8. Hubris stalks us all...
  9. +1
  10. ElCubano


    Perhaps it was the other way around in this case..Maybe it got him eveyrthing he had...insider trading..:)
    #10     Oct 16, 2009