Ex-Galleon Trader Expected To Headline Rajaratnam Trial's Fourth Week

Mar 28 2011 | 1:26am ET

As Galleon Group founder Raj Rajaratnam's insider-trading trial enters its fourth week, prosecutors are set to call their third key cooperating witness, a former employee of the former hedge fund billionaire.

Adam Smith, a one-time portfolio manager at Galleon, is expected to follow fellow cooperators Anil Kumar and Rajiv Goel to the stand this week. Smith is expected to tell jurors that he got inside information about several companies from a former Morgan Stanley colleague that he both traded on and shared with his former boss, Rajaratnam.

The Morgan Stanley banker in question is Kamal Ahmed, who has not been charged with any wrongdoing but is currently on leave from Morgan Stanley while the firm conducts an investigation. Ahmed is alleged to have passed information about at least two impending mergers, including Advanced Micro Devices' acquisition of ATI Technologies in 2006.

In a recorded conversation from 2008 played earlier in the trial, Smith is heard telling Rajaratnam, "I talked to Kamal last night" about a deal involving Vishay Intertechnology that never came to fruition.

Smith, who pleaded guilty to insider-trading charges in January, has also admitted to illegally trading the shares of two other technology companies.

Rajaratnam's lawyers said last week that they want to use a wiretap from January, on which Smith is heard attempting to elicit information from another former Galleon trader, to discredit him. Prosecutors oppose that request.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.