USA: Galleon Group LLC co-founder Raj Rajaratnam arrives at court for opening statements ahead of his historic insider-trading trial
Record ID:
588943
USA: Galleon Group LLC co-founder Raj Rajaratnam arrives at court for opening statements ahead of his historic insider-trading trial
- Title: USA: Galleon Group LLC co-founder Raj Rajaratnam arrives at court for opening statements ahead of his historic insider-trading trial
- Date: 10th March 2011
- Summary: NEW YORK CITY, NEW YORK, UNITED STATES (MARCH 09, 2011) (REUTERS) GALLEON GROUP CO-FOUNDER RAJ RAJARATNAM ARRIVING AT COURTHOUSE SECURITY GUARD OUTSIDE OF THE FEDERAL COURTHOUSE FEDERAL COURTHOUSE
- Embargoed: 25th March 2011 12:00
- Keywords:
- Location: Usa, Usa
- Country: USA
- Topics: Legal System,Finance
- Reuters ID: LVAAHXSQOQQ466TN97JGYRHVDU99
- Story Text: Galleon Group LLC co-founder Raj Rajaratnam arrives at Manhattan Federal Court, where opening statements are expected to take place in the historic insider-trading case.
The biggest Wall Street insider trading criminal case in a generation goes to trial on Wednesday (March 09), when prosecutors open their case against Galleon Group founder Raj Rajaratnam whose arrest 16 months ago shook the hedge fund world.
A jury of New Yorkers will hear U.S. prosecutors outlining how they believe Sri Lankan-born Rajaratnam broke the law by designing a complex web of stock tippers who helped him reap $45 million (USD) in illicit profit between 2003 and March 2009.
For the first time, the jury and observers of the high-profile case will be given an insight into the defense trial strategy, which faces seemingly overwhelming evidence of leaked corporate secrets, tapped telephones and friends-turned-government witnesses.
The selection of a jury of 12 and six alternates began on Tuesday (March 08) and is expected to be completed on Wednesday (March 09).
Presiding U.S. District Judge Richard Holwell sent prospective jurors home with a warning not to read anything about the highly-publicized case. He then told prosecutors and Rajaratnam's multimillion dollar defense team that opening statements would go ahead "for sure" on Wednesday.
Since arresting 53-year-old U.S. citizen Rajaratnam in October 2009 and announcing criminal charges against 26 former traders, executives and lawyers, the U.S. government has pressed ahead with what it calls the biggest probe of insider trading in the $1.9 trillion (USD) hedge fund industry.
Nineteen people have pleaded guilty in the Galleon case. It stands apart from past insider trading investigations because of the government's wide-scale use of phone taps. As many as 173 audio recordings will be played to the jury during the two-month long trial.
Rajaratnam is the former head of the Galleon Group hedge fund that once managed $7 billion. He could face a 20-year jail sentence if convicted on the most serious charge of securities fraud. - Copyright Holder: REUTERS
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