The New York Times reports that Raj Rajaratnam has more evidence stacked against him now that a tenth person has pleaded guilty in the Galleon Group insider trading case. Rajiv Goel, was the third person that pleaded guilty and had direct ties to Mr. Rajaratnam; the founder of Galleon.
The Wall Street Journal reports that the Galleon case began when David Slaine pleaded guilty to insider trading, and as part of his plea deal, Mr. Slaine agreed to work with New York prosecutors by wearing a wire. The information that they would receive from Mr. Slaine's informant work and from wire taps would allegedly assist them in collecting evidence against Galleon Group traders who they thought were engaging in illegal insider trading.
Once the evidence was in, the New York Times reports that 22 people had been criminally charged or faced civil charges by the Securities and Exchange Commission in connection with the Galleon case.
In Mr. Goel's trial, the defendant pleaded guilty to two counts of conspiracy as well as security fraud for allegedly providing Mr. Rajaratnam with confidential company information. Specifically, CNet News reports that Mr. Goel admitted to informing Mr. Rajaratnam of the "future Sprint Nextel joint venture that Intel had targeted for a $1 billion investment."
Reuter quotes Mr. Goel when he admitted his guilt to Judge Alvin Hellerstein: "I received money from him [Mr. Rajaratnam] for personal financial needs... Over a number of years, he made trades that made me profits." For his crimes, Mr. Goel could face 25 years in prison.
Mr. Rajaratnam, the man who Mr. Goel has implicated, swears his innocence. The Times reports that Mr. Rajaratnam is out on bail for $100 million.
Related Resources:
- Hedge Fund Manager and New Castle, LLC Employee Indicted in Galleon Insider Trading Case (FindLaw)
- 'Octopussy,' Others Plead Not Guilty In Fraud Case (The Associated Press)
- Securities Fraud (FindLaw)
- Directory for a New York criminal defense attorney (FindLaw)
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