Raj Rajaratnam, founder of Galleon Group, was arrested last night on insider trading charges.
The indictment includes some eyebrow-raisers:
- The government has a cooperating witness, called CW throughout the indictment, who has already plead guilty. The CW has cooperated with the FBI since November 2007.
- Some evidence was obtained through court-authorised wiretaps
- Four counts of conspiracy (referencing the purchase of Polycom, Hilton, Google and AMD stock, among others)
- Nine counts of securities fraud (Rajaratnam is charged with all 13 counts; the two other defendants are only charged with some of these; Clearwire, Akami, AMD, and PeopleSupport are the stocks listed with these charges)
Some details of the evidence:
- The indictment is broken down into four time periods: Rajaratnam is said to have conspired to trade on inside information with CW from January 2006 to July 2007, with defendant Rajiv Goel from March 2008 through October 2008, with Anil Kumar from August 2008 to October 2008, and somone identified as CC-1 from July 2008 through October 2008.
- The securities fraud charges are for dates ranging from March 24, 2008, to October 7, 2008.
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