Galleon Group founder Raj Rajaratnam and five others have been arrested and charged in a $20 million insider-trading case, prosecutors said.
At a press conference Friday, U.S. Attorney Preet Bharara announced that Rajaratnam, the founder of the Galleon Group and portfolio manager for the Galleon Technology Funds, has been charged with four counts of conspiracy and eight counts of securities fraud.
Galleon at one point had as much as $7 billion in assets under management.
"This is not a garden variety insider-trading case," Bharara said. "This case represents the largest hedge fund insider-trading case ever charged criminally."
Bharara also said he believed it was the first time that prosecutors had used a wiretap in an insider-trading case.
Galleon Statement
Fri Oct 16, 2009 2:59pm EDT
NEW YORK--(Business Wire)--
Galleon Group LP ("Galleon") today issued the following statement:
"Galleon was shocked to learn today that Raj Rajaratnam was arrested this
morning at his apartment. We had no knowledge of the investigation before it was
made public and we intend to cooperate fully with the relevant authorities.
Galleon continues to operate and is highly liquid."
Media:
Sard Verbinnen & Co
George Sard/Dan Gagnier/Renee Soto
212-687-8080
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