Govt: Galleon Founder Wanted Edge In Stock Trading
NEW YORK (CBSNewYork/AP) — The U.S. government claims a one-time billionaire wanted an edge in the trading of stocks for his hedge funds and was willing to break the law to get it.
The trial was set to resume Monday in Manhattan federal court for Galleon Group founder Raj Rajaratnam. He’s the only one of more than two dozen people charged in the insider trading crackdown to face trial. Nineteen have pleaded guilty.
The government alleges Rajaratnam earned more than $50 million illegally by trading on inside information since 2003.
His lawyer, John Dowd, says Rajaratnam had the best research in the business and did not need to trade illegally. Rajaratnam has pleaded not guilty to conspiracy and securities fraud charges.
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