Galleon Whistleblower In Accord With Prosecutors

Feb 28 2011 | 1:35pm ET

The former Galleon Group employee who filed a whistleblower lawsuit in the case will likely testify against his old boss.

The unidentified witness, who approached the Securities and Exchange Commission in November, could testify to statements he heard made by both Galleon Group founder Raj Rajaratnam and Rajaratnam's brother, Ragakanthan, a former portfolio manager at Galleon. Raj Rajaratnam is accused of running a $45 million insider-trading ring from the hedge fund; his brother has not been charged with any wrongdoing.

As part of the deal, the whistleblower will receive immunity from prosecution—criminal or civil—in the Galleon case, although it is unclear whether he'll actually testify. Despite the demand for immunity, the whistleblower's lawyer, Stuart Meissner, has said he did nothing illegal.


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