BUSTED: A Morgan Stanley Banker Gave Raj His Big Tip

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Apparently part of the prosecution’s strategy is making Raj’s insider trading network appear as wide-spread and far-reaching as possible because in one case, they say, the tip came from a Morgan Stanley banker who didn’t even know him.

The Morgan Stanley banker isn’t identified, and he didn’t tell Raj directly. He told someone else who told Raj. Still, these are hefty accusations, because we can assume that most of the people who were working on the merger between AMD and ATI Technologies at Morgan Stanley will seem at least a little more suspicious.

From a letter prosecutors sent to Raj’s lawyers, via Bloomberg:

“In or about May 2006, [redacted], a banker with Morgan Stanley, provided [redacted] with information regarding AMD’s acquisition of ATI,” said the letter, signed by Assistant U.S. Attorney Jonathan Streeter. “[Redacted] provided this information to Rajaratnam.”

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