Appeals Court Stays Rajaratnam Wiretap Order

Feb 12 2010 | 5:41am ET

The Securities and Exchange Commission won’t be getting its hands on Raj Rajaratnam’s wiretaps just yet.

A federal appeals court granted the Galleon Group founder, who has been charged with masterminding the a $50 million insider-trading circle, a temporary stay of a lower court ruling that ordered him to turn over some 15,000 wiretap intercepts at the heart of the criminal case against him and his co-defendant, Danielle Chiesi. The judge overseeing the SEC’s civil case, U.S. District Judge Jed Rakoff, ordered Rajaratnam and Chiesi to turn over the wiretaps by Monday.

Rajaratnam and Chiesi received the wiretaps as part of discovery in the criminal insider-trading case against them. The two have argued that the SEC does not have the authority to obtain the wiretaps. Their lawyers have also announced that they will challenge the legality of the wiretaps for use in the criminal case.

A three-judge panel of the U.S. Court of Appeals for the Second Circuit in New York will consider the order to turn over the wiretaps. No date has been set for the hearing; the civil case is set to go to trial on Aug. 2.

“We are very pleased that this serious issue will get the court’s full consideration,” John Dowd, a lawyer for Rajaratnam, said.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Scene Last Night: Clinton, Schwarzman, Corzine, Neidich, Diamond

Nov 25 2014 | 5:52pm ET

Steve Schwarzman had a granddaughter yesterday morning. Last night he sat one table...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.