Rajaratnam Case To Go To Jury Today

Apr 25 2011 | 12:50pm ET

The jury in the Raj Rajaratnam case is expected to begin deliberating on the Galleon Group founder's fate today.

U.S. District Judge Richard Holwell is expected to charge the jurors today after prosecutors finish their final rebuttal. That rebuttal began on Thursday after Rajaratnam's lawyer, John Dowd, completed his nearly five-and-a-half hour closing argument.

Dowd hammered home the defense's theory that the allegedly confidential information Rajaratnam traded on was "public."

"You must acquit," he implored the seven women and five men on the jury.

Dowd said prosecutors painted a "make-believe" picture of life on Wall Street. There is "nothing wrong with" what Rajaratnam did, he said. "That happens every day on Wall Street."

Dowd also savagely attacked the government's string of star witnesses, calling one, former Intel Corp. executive and alleged Rajaratnam tipster Rajiv Goel "the worst liar to ever take the stand in any courtroom in this building." He mocked several others, saying that former Galleon trader Adam Smith received "a free ride" from prosecutors in exchange for his testimony and "changed his story so many times he doesn't know if he's coming or going." Dowd also ssentially called Anil Kumar, a former McKinsey & Co. director and Rajaratnam friend, stupid.

"This is a perfect example of why you can't listen to wiretaps in a vacuum," Dowd said. "If Kumar couldn't find the size of the layoffs" at EBay, in one case, "he hadn't read the newspaper."

Dowd also ridiculed other aspects of the government's case, calling it "probably the first insider-trading case in history where the government says the defendant lost $67 million."

On rebuttal, Assistant U.S. Attorney Jonathan Streeter blasted Dowd's assertion that Rajaratnam had only used public information in his trading. While the defendant did wade through a "blizzard" of public information, he also had "a huge advantage to the ordinary investor. That advantage is called insider-trading. It's a crime."

Streeter came to the defense of his star witnesses, asking jurors to "put aside whether or not you like them."

"Think about whether they're corroborated. These people are corroborated by wiretaps calls, they're corroborated by phone records, they're corroborated by trading records."

If convicted, Rajaratnam faces decades in prison.


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.