US to file more charges against Sri Lankan billionaire

6 January 2010 03:37 am - 0 - {{hitsCtrl.values.hits}}

A A A

Indicted Galleon hedge fund founder Raj Rajaratnam faces expanded charges of insider trading and allegations that he earned $36 million in illicit profits, double the amount previously alleged, U.S. prosecutors said on Tuesday.

The government, pursuing what it has described as the biggest hedge fund insider trading case ever, signaled its intention to add to charges against billionaire Rajaratnam in a memorandum asking a Manhattan federal court judge to revoke his bail.

Dan Gagnier, a spokesman for Rajaratnam's lawyer, John Dowd, said "no comment at this time" on Tuesday's government memorandum.

Prosecutors said that while the indictment in December "alleged that Rajaratnam was responsible for illicit profits of $17 million, at this time the Government believes that the total illicit gains attributable to Rajaratnam's illegal trading are at least approximately $36 million."

The memorandum went on to say that the government plans to file a superseding indictment "that will expand the charges set forth against Rajaratnam in the current indictment."

It said those would include insider trading between March and July 2006 over an acquisition of ATI Technologies Inc by Advanced Micro Devices Inc. It said the information came from an unidentified source "to whom Rajaratnam began making large payments in exchange for inside information in or about 2004."

Prosecutors in the office of the Manhattan U.S. Attorney said in the memorandum to U.S. District Court Judge Richard Holwell that "these changed circumstances militate in favor of detaining Rajaratnam rather than easing his bail conditions."

A hearing is scheduled for Friday on bail. Rajaratnam's lawyers have asked for his bail to be reduced to $20 million from $100 million. He has pleaded not guilty to the indictment and argued that evidence gathered through wire taps violated his constitutional rights.

Sri Lankan-born Rajaratnam, 52, a U.S. citizen, is the most prominent defendant among 21 people criminally or civilly charged in an insider trading case involving employees of some of America's best-known companies, including International Business Machines Corp, McKinsey & Co and Intel Capital, an arm of Intel Corp.

Rajaratnam and Danielle Chiesi, a former employee of New Castle Funds LLC, are the only two defendants indicted so far. The indictments returned on December 15 formalize charges of securities fraud and conspiracy to commit securities fraud against the pair, who were arrested on October 16.

Six traders or lawyers have pleaded guilty to criminal charges in the sprawling investigation, which ensnared employees on criminal or civil charges of IBM, McKinsey & Co management, Intel Capital, Moody's and lawyers of the Ropes & Gray law firm.

In the overall case, inside trading allegedly took place in shares of Google Inc, Sun Microsystems Inc, Advanced Micro Devices Inc, Polycom Inc, Hilton Hotels, Intel, Clearwire Corp, Akama Technologies Inc, Athero Communications Inc and IBM, among others.

Reuters

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

US to file more charges against Sri Lankan billionaire

Comments - 0

Add comment

RECOMMENDED

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Western purple-faced langurs see blue!

Most Viewed in News

Ranil Wickremesinghe caravan moves on despite barking dogs

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

Racing event tragedy leaves seven dead including eight-year-old child

Former MP Palitha Thewarapperuma dies from electrocution

SL on alert on possible genocide allegations by Canada

Two racing drivers arrested over Fox Hill tragedy

MIRROR CRICKET

TODAY'S HEADLINES