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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...