Galleon Wants Goldman, AT&T Out Of Insider-Trading Case

May 14 2010 | 9:17am ET

Galleon Group founder Raj Rajaratnam continued his bid to cut the government’s insider-trading case against him down to size.

The hedge fund billionaire’s lawyers again asked a federal judge to exclude allegations that Rajaratnam illegally traded more than 20 stocks first disclosed to the defense by prosecutors in March and April. Among the shares in question are AT&T Inc., Cisco Systems and Goldman Sachs Group.

John Dowd, a lawyer for Rajaratnam, said that 10 of the 21 stocks in question “were never mentioned in any of the government’s applications for authorization to wiretap Rajaratnam’s telephone.” Thirteen of the stocks that were, by contrast, are not the subject of insider-trading allegations.

“Why, if it intended from the beginning to prosecute Mr. Rajaratnam for trading or conspiring to trade in all of the various stocks… did it not simply identify those in the criminal complaints or indictments,” Dowd asked.

Rajaratnam is seeking to have thousands of the wiretaps at the heart of the government’s case against him tossed altogether. U.S. District Judge Richard Holwell is to hear arguments on June 17.

Rajaratnam and his co-defendant, former New Castle Partners executive Danielle Chiesi, are set to go on trial in October. If convicted, both face more than a century in prison.

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