Raj Rajaratnam Is Refusing To Hand Over The Wiretaps The SEC Legally Has Rights To

Raj Rajaratnam is being very cheeky.

He knows the SEC wants to listen to his wiretaps, and he knows they’re allowed to listen to them. 

But he still won’t turn them over, Bloomberg reports.

Basically, the Galleon founder has copies of wiretaps made by the Justice Department, because he needed them to prepare a defence for his insider trading criminal case.

After the criminal case, Rajaratnam faced a civil enforcement case too.

And in February, a judge told Rajaratnam turn over the recordings so the SEC could prepare their case.

After battling for months over whether the wiretaps were in fact, admissible in court, another judge finally ruled in late November that prosecutors had properly complied with federal laws in using wiretaps to investigate Raj and another hedge fund consultant.

But Raj still won’t hand them over. He’s had them since December last year.

From Bloomberg, 

“Given that the legality of the wiretaps has now been established, and given that the SEC is only seeking relevant intercepts, the SEC’s ‘significant’ right to obtain the relevant intercepts outweighs whatever arguable remaining privacy interests defendants and others may have,” the SEC said in court papers.

“Without the recordings, the SEC likely will be deprived of important admissions and in many instances the best, most direct evidence of wrongdoing.”

For more go to Bloomberg >

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