It all started with the text.
Reviewing boxes and boxes of documents gathered during an investigation of Raj Rajaratnam’s brother, a lawyer for the SEC found a text from Roomy Khan to Rajaratnam about Polycom stock: Don’t buy “till I get guidance; want to make sure guidance OK.”
It was with that text that authorities confronted Roomy Khan with — she agreed to record her phone calls with him, which lead to wiretaps on Rajnaratnam’s calls and others.
As authorities approached more hedge funders and investment advisors with evidence against them, more turned on Rajaratnam and became witnesses for the government.
And on October 16 of this year, after a two year of investigation, when authorities learned Rajaratnam — who already suspected a former Galleon employee was “wearing a wire” — had purchased a plane ticket to London, they pulled the plug and made their early morning arrests.
The Wall Street Journal’s Susan Pullium provides this information and more in a stunning step-by-step account of the investigation, including how Roomy Khan befriended young insiders who she believed would give her information, how Danielle Chiese appeared to confirm her conversation with an IBM higher-up and how people at Galleon, including Rajaratnam, were nervous well before October 16.
Pullium’s entire piece, truly a must read, is here.
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