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Govt: Galleon Founder Wanted Edge In Stock Trading

Billionaire Galleon Group hedge fund cofounder Raj Rajaratnam departs Manhattan Federal Court - New York, NY - Mar 8, 2011 - Photo: Mario Tama/Getty Images

Galleon Group hedge fund cofounder Raj Rajaratnam (credit: Mario Tama/Getty Images)

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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.

(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)