Galleon, Raj Rajaratnam and confidential tips

Claim under review

Did Galleon founder Raj Rajaratnam trade on material nonpublic tips from corporate insiders?

Chronology

FBI used authorized wiretaps. Rajaratnam was arrested in 2009, convicted on 14 counts in 2011 and sentenced to 11 years; Second Circuit affirmed in 2013.

Court, regulatory and primary evidence

Recorded calls, trade records, witness testimony and appellate ruling establish specific information flows and affirmed counts.

Independent cross-checks

Independent corroboration: Second Circuit U.S. v Rajaratnam (2013) provides a separate record relevant to this case. Appeal, wiretap and evidence analysis.

Competing account and limits

Defense challenged cooperators’ motives and call interpretations. Verdict concerns charged securities, not all Galleon trades or hedge funds generally.

Evidence that could alter this assessment

Authenticated calls, source disclosure timelines and trades could change claims beyond affirmed counts; conviction changes only through successful review.

Skeptical finding

Specified insider-trading convictions stand; universal hedge-fund collusion is not established.

Annotated sources

1. DOJ Rajaratnam verdict (2011)Official jury outcome.
2. Second Circuit U.S. v Rajaratnam (2013)Appeal, wiretap and evidence analysis.
3. DOJ sentencing (2011)Sentence and case disposition.

Historical research only; not legal or investment advice.