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

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

Business Insider has been reporting on the unusual trading activity of a mystery trader who placed a profitable short equity bet to the tune of $21 million on the Aug. 10 move in the CBOE Volatility Index (VIX).