Meet The New Rajaratnam: Rag, The FBI's New Insider Trading Target


Photo: WSJ

The younger brother of Galleon’s Raj Rajaratnam, Rag Rajaratnam is reportedly now being investigated by the FBI in connection to the Galleon insider trading case, the WSJ reports.In a filing against Galleon trader Michael Cardillo, who pleaded guilty last week, a co-conspirator indentified as “CC-1” is mentioned.

CC-1 is apparently Ragakanthan Rajaratnam, Raj’s little bro and is currently a vice president at Clorox.

Remember, he hasn’t been charged with any wrongdoing by the Feds.

But Rag, who’s 49, worked at Galleon between 2006 and 2009 as a portfolio manager and was known there as “R.K”. At Clorox he’s in the marketing division, analysing consumer trends to develop marketing programs and products.

According to the WSJ, here’s what Rag did:

[A]t Galleon, Ragakanthan Rajaratnam managed a portfolio of stocks, and his orders to buy and sell stocks were executed by Mr. Cardillo.

The charging document… alleges that Mr. Cardillo, Raj Rajaratnam and CC-1 executed transactions based on inside information in shares of J.M. Smucker Co. in advance of its acquisition of Folgers in June 2008 from Procter & Gamble Co. Prosecutors also alleged that Mr. Cardillo, CC-1 and Raj Rajaratnam traded on inside information in advance of earnings by P&G.

R.K. is the middle of three brothers in the Rajaratnam family. He went to Cornell and then worked at General Mills. Kraft and ConAgra Foods before landing his gig at Galleon.

Raj’s older brother, Rengan, has also been mentioned in connection with the probe

That’s because the case against Raj and Galleon traces back to an earlier civil insider-trading probe from 2007, which involved Rengan’s hedge fund, Sedna Capital Management – a long/short tech and healthcare fund. When Sedna closed in ’07, Rengan jumped onto the Galleon bandwagon.

From his LinkedIn profile, it appears Rengan went to Stanford Business School.

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