The FBI is reportedly investigating Raj Rajaratnam’s little bro Rag now.
And the timing is no accident.
This is apparently a tried and tested method and has been used by the feds in several other high-profile federal cases as they try to build pressure on Wall Street defendants and their “big fish” to admit guilt.
We’ve seen it done before in episodes of Law and Order, but it really is a legitimate tactic in the FBI toolkit.
Officials investigate relatives of defendants as they decide whether to plead guilty because “the fate of a family member is a huge consideration for people who are confronting a criminal investigation—and the government knows that and takes advantage of it,” a criminal lawyer told the WSJ.
It’s been done in a number of cases, including:
- The case against Samuel Waksal, the ex-CEO of ImClone Systems. The feds looked into Waksals daughter and father, after they sold ImClone stock based on information he’d passed to them. He pleaded guilty in 2002.
- Former New York State comptroller Alan Hevesi. When he pleaded guilty last year in a pension-fund investigation, he made sure that prosecutors agreed not to charge his sons with any crimes. One of his son’s had been investigated in connection to the case.
And now they’re trying it on Raj, using his brother Rag aka “RK.”