Wednesday, June 18
NEW YORK (AP) — A prosecutor in the New York insider trading trial of an imprisoned hedge fund owner's brother says the pair teamed up to cheat ordinary investors.
The prosecutor's opening statements about Rengan Rajaratnam (RING'-an rah-juh-RUHT'-nuhm) were countered by a defense lawyer, who said the brothers were very different and didn't share inside information.
The brother, Raj Rajaratnam (rahj rah-juh-RUHT'-nuhm), is the founder of the Galleon Group of hedge funds and a onetime billionaire. He is serving an 11-year sentence for making up to $75 million illegally.
The charges against Rengan Rajaratnam are an extension of charges against his brother and two dozen defendants who pleaded guilty or were convicted.
Prosecutors made extensive use of wiretaps in an insider trading case for the first time during the federal investigation.