Galleon Defendants Seek To Split Trials

Mar 15 2010 | 1:39pm ET

Galleon Group founder Raj Rajaratnam and former New Castle Partners executive Danielle Chiesi on Friday moved to separate their trials for insider-trading.

Lawyers for both Rajaratnam and Chiesi, who are set to go on trial in October, say that the case against them includes seven distinct conspiracy allegations that cannot be shown to be connected.

“There is an utter lack of meaningful overlaps between the seven alleged conspiracies in the case,” John Down, Rajaratnam’s lawyer, wrote to U.S. District Judge Richard Holwell. “Jurors would become confused as to which evidence pertained to which conspiracy count and, in turn, which defendant,” Chiesi’s lawyers added.

Rajaratnam’s lawyers also used the occasion to further savage the government’s case, again attacking star witness Roomy Khan, a former Galleon employee. Dowd called Khan “an inveterate fabricator” and said the government failed to tell the court about her previous insider-trading conviction and that she recanted part of her story when it sought the wiretaps at the heart of the case.

Dowd is seeking to have those wiretaps tossed out of the case.

Rajaratnam and Chiesi have pleaded not guilty. A total of 21 people have been charged in the case, and 10 have pleaded guilty.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...