Wednesday, Nov 26, 2014

Rajaratnam’s brother seeks dismissal of insider charges

Reuters | Posted: February 10, 2014 2:57 am

Rengan Rajaratnam, the younger brother of imprisoned hedge fund manager Raj Rajaratnam, urged a US judge on Friday to dismiss insider trading charges levelled against him last year.

In a motion filed in US District Court in New York, his lawyers argued the government had taken positions in the indictment that contradicted positions prosecutors took in trying his older brother for insider trading.

“Principles of fairness dictate that Rengan, at a minimum, should be tried under the same standard as Raj,” the defensce lawyers wrote in the motion.

A spokeswoman for US Attorney Preet Bharara in Manhattan declined to comment. The case is one of a wave of insider trading prosecutions pursued by Bharara’s office, resulting in 79 convictions since October 2009.

Raj Rajaratnam, the founder of the hedge fund Galleon Group, received an 11-year prison sentence in October 2011 after a jury convicted him charges related to insider trading.

A grand jury subsequently indicted Rengan Rajaratnam, a former portfolio manager at Galleon, in March 2013 on seven counts of conspiracy and securities fraud.

The indictment charged that Rengan Rajaratnam, 43, had conspired with his older brother to trade on non-public information related to technology companies Advanced Micro Devices Inc and Clearwire Corp in 2008, resulting in almost $1.2 million in profits.

In court papers Friday, Rengan Rajaratnam’s lawyers contended the indictment failed to allege that he knew that two alleged tippers of inside information received a personal benefit in exchange for providing tips to Raj Rajaratnam.

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