Prosecutors Must Offer Details On Rajaratnam, Chiesi Charges

Jul 15 2010 | 11:49am ET

A federal judge has ruled that prosecutors haven’t given Galleon Group founder Raj Rajaratnam and former New Castle Partners executive Danielle Chiesi enough information about the insider-trading charges against them.

U.S. District Judge Richard Holwell ordered prosecutors to provide more details about the insider tips Rajartnam and Chiesi are accused of trading and trading on. In cases involving acquisitions, prosecutors must specify the name of the target acquisition, the substance of the information provided, the date the tip was received and who passed it along.

“It matters when the information was conveyed,” the judge ruled. “Information about an upcoming acquisition may be material and nonpublic on one day, and public the next day.”

Prosecutors do not have to itemize the trades included in the conspiracy charges or give further details about allegations stemming from the wiretaps at the heart of the case, as those taps have already been turned over.

“A defendant might argue that the information he sought to obtain was not material, or that it was already public at the time he tried to get it,” Holwell wrote. “But he can only do that if he knows what the information is and when it was conveyed.”

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…