Prosecutors and the FBI have announced that they have filed charges against several people involved with the Galleon Group hedge fund, including founder Raj Rajaratnam. Galleon is a major hedge hund player known for its investment in technology stocks.
Most notably, the government is filing criminal charges related to insider trading in a number of securities going back to 2006. So this is much more than a standard SEC civil charge.
Rajaratnam was charged with four counts of conspiracy and eight counts of securities fraud. He was arrested in his apartment last night.
The Galleon Group has something like $3 billion under management.
The charges stem from trades on stocks including Hilton Hotels, AMD (AMD), Clearwire (CLWR) and Google (GOOG), Akamai (AKAM).
A number of other individuals were named in the complaint, including an executive from Intel Capital, the venture capital arm of Intel, and one from McKinsey & Company.
The news was broken by David Faber at CNBC.
Here’s the indictment (via DealBook)
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