Sunday, 28 August 2016
Last updated 1 day ago
Mar 25 2013 | 9:18am ET
Galleon Group founder Raj Rajaratnam's younger brother has surrendered to authorities and will appear in court to face insider-trading charges today.
Rajarengan Rajaratnam turned himself in to the Federal Bureau of Investigation in Brazil and was accompanied to New York by agents. He was arrested upon his arrival at John F. Kennedy International Airport yesterday morning.
Rajaratnam had been living and working in Brazil for about a year, his lawyer said, and he returned voluntarily, sparing prosecutors an extradition battle.
Rajaratnam was indicted last week on securities fraud and conspiracy charges, some two years after his brother was convicted of similar charges. The elder Rajaratnam is currently serving an 11-year prison sentence.
The younger Rajaratnam, known as Rengan, is accused of illegally trading two technology stocks while working at Galleon. His brother was convicted of insider-trading of those stocks and others. The Securities and Exchange Commission has also sued Rengan, accusing him of illicit trading in a number of other stocks.
Rengan's lawyer, David Tobin, said his client is innocent.
"Mr. Rajaratnam denies the charges and looks forward to clearing his name," Tobin said. "We are confident that Mr. Rajaratnam will be vindicated upon careful considering of all the evidence."