The Galleon Group insider trading bust seemed like a much-needed post-Madoff success for regulators.
Now, it appears the arrest of Raj Rajaratnam and Co. represents another major missed opportunity.
Wall Street Journal: Federal prosecutors investigated hedge-fund titan Raj Rajaratnam on suspicions of insider trading more than a decade before Mr. Rajaratnam, the head of Galleon Group, was charged with securities fraud on Oct. 16, according to legal filings reviewed by The Wall Street Journal. Prosecutors, however, were unable to prove their suspicions, which centered on information stolen from chip maker Intel Corp., according to the filings.
The probe was described in a sentencing recommendation involving an Intel employee who pleaded guilty to wire-fraud charges in 2001. The former Intel employee is Roomy Khan, the government’s key informant in its as yet unproven case against Rajaratnam and Galleon.
Read the whole WSJ article here.
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