Rajaratnam sibling faces Wall St. fraud case
The younger brother of jailed hedge fund manager Raj Rajaratnam has been charged by US prosecutors with conspiring in an insider trading scheme to cheat on Wall Street and earn nearly $1.2 million illegally.
Rajarengan “Rengan” Rajaratnam, 42, of Manhattan, was charged by the Federal Bureau of Investigation (FBI) and the US Securities and Exc-hange Commission (SEC) with conspiracy to commit securities fraud and six counts of securities fraud.
A former portfolio manager at the hedge fund management firm Galleon Group, Rengan Rajara-tnam was charged in an indictment returned Wed-nesday and unsealed a day later but has not yet been arrested on these charges.
He is the younger brother of Raj Rajaratnam who, in October 2011, was sentenced to 11 years in prison and fined a total criminal and civil penalty of over $150 million after being convicted in a massive insider trading case, the largest in US history.
“As alleged, Rengan Rajaratnam and his brother shared more than DNA, they also shared a penchant for insider trading. Along with his brother Raj, Rengan Rajaratnam was allegedly at the heart of an insider trading scheme that swept up an unprecedented number of people in its web of corruption, and with his indictment, we are one step closer to closing that chapter,” US attorney Preet Bharara said. The indictment alleges that Rajar-atnam conspired with his brother, Galleon founder Raj Rajaratnam, to trade on the basis of material, non-public information concerning Clearwire Corp. and Advanced Micro Dev-ices Inc. in 2008, earning $1.2 million in profits in the aggregate.
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