Rajaratnam Brother Returns To U.S. To Face Insider-Trading Charges

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."


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note