Prosecutors: AT&T, Goldman Sachs Among Illegal Trades In Galleon Case

Apr 13 2010 | 10:18am ET

Galleon Group founder Raj Rajaratnam and other accused members of his insider-trading circle made illicit deals involving 22 companies, nearly twice as many as previously alleged, according to prosecutors.

Rajaratnam and the other 20 people charged in the sprawling case traded in shares of AT&T Inc., Cisco Systems, Clear Channel, Goldman Sachs Group, NetLogic Microsystems and PeopleSupport, Assistant U.S. Attorney Jonathan Streeter told Rajaratnam’s legal team in a March 22 letter. Previously, the circle was accused of illicit trading in just 12 stocks, most notably Advanced Micro Devices, Google, IBM and Intel.

“Our investigation is ongoing and the information that we are currently providing is based on what is known today,” Streeter wrote in the letter, which was included in a court filing last week by the defense. He added that “almost all” of the companies listed “are clearly disclosed in the wiretap applications, intercepted calls and consensually recorded calls.”

Rajaratnam and his co-defendant, former New Castle Partners executive Danielle Chiesi, are seeking to have those wiretaps excluded from the trial, which is set to begin on Oct. 25.

Eleven of the 21 people charged in the Galleon case have pleaded guilty, and eight are cooperating with prosecutors.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…