Second Galleon Trial Begins; Rajaratnam Tape To Be Heard

May 17 2011 | 10:16am ET

Raj Rajaratnam isn’t a defendant in the second Galleon Group insider-trading trial, which started yesterday, but the hedge fund founder and convicted felon was omnipresent during the first day.

U.S. District Judge Richard Sullivan and attorneys for both sides began sifting through 100 potential jurors, spending nine hours going through the 68 items on the jury questionnaire with 45 of them. One of the questions specifically asked about the Rajaratnam trial, which ended last week with the Galleon founder’s conviction on all counts.

On trial now are three men, including a former employee of Rajaratnam’s, Zvi Goffer. Goffer is accused of leading one of two interlocking insider-trading rings—Rajaratnam headed the other—and is on trial with two employees of a hedge fund, Incremental Capital, he founded after stints at Galleon and Schottenfeld Group. In addition, Goffer’s brother, Emanuel, and Michael Kimelman face conspiracy and securities fraud charges.

One of the matters on the questionnaire deals specifically with Rajaratnam’s trial: “Have any of you seen, heard or read news reports about the trial of Raj Rajaratnam?” Prior to the start of jury selection, Sullivan warned both prosecutors and the defense team, “Mr. Rajaratnam is going to be a factor in this trial. He’s going to be mentioned or in fact heard on these tapes.”

Prosecutors plan to play at least 60 wiretapped conversations. One is between Rajaratnam and Zvi Goffer.

Sullivan dismissed one juror who told him she had read about Rajaratnam’s being found guilty.

“I know what I read in the other stories and I don’t think I can block it from my mind,” she said.

Sullivan told the potential jurors that the trial could last five or six weeks. Jury selection is expected to be completed today, with opening statements beginning later today or tomorrow.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.