Rajaratnam Objects To New SEC Charges

Jan 25 2010 | 9:19am ET

Galleon Group founder Raj Rajaratnam’s legal team is opposing the Securities and Exchange Commission’s bid to add new charges to its complaint against him. And, as is their custom, John Dowd and company took the opportunity to blast the case against their client.

The SEC’s move would “seriously prejudice” Rajaratnam and further delay the case, which is set to go to trial on Aug. 2, Dowd told U.S. District Judge Jed Rakoff on Wednesday. He said that the SEC should have moved to added the charges—which include allegations that Rajaratnam paid for tips based on the Jan. 7 guilty plea by former McKinsey & Co. director Anil Kumar—sooner.

The request to amend the complaint for a second time “is a product of the SEC’s rush to file this case at the same time as the United States Attorney’s Office filed its criminal complaint so that they could hold a joint press conference trumpeting their purported achievements,” Dowd wrote.

Rajaratnam has been charged with participating in a $40 million insider-trading ring. He has pleaded not guilty to the criminal charges against him. Dowd said he is set to be deposed in the SEC case in March.

Rakoff will hear arguments on the SEC’s request today, the SEC said.

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