Rajaratnam Brother Pleads Not Guilty

Mar 25 2013 | 2:38pm ET

Raj Rajaratnam's brother pleaded not guilty to insider-trading charges today after returning to the U.S. from Brazil.

Rajarengan Rajaratnam, known as Rengan, entered his plea in Manhattan federal court to seven conspiracy and securities fraud charges. He was expected to be released on $1 million bond, having surrendered his passport.

The younger Rajaratnam was indicted last week for his role in his brother's fraud, nearly two years after Raj was convicted and sentenced to 11 years in prison, and as the statute of limitations deadline for some charges rapidly approached. He turned himself in to the Federal Bureau of Investigation in Brazil, where he's lived and worked for the past year, and returned to New York yesterday morning.

"After reading about his indictment, Mr. Rajaratnam immediately volunteered to return from Brazil, where he has been living and working for the past year, in order to defend himself," Rengan's lawyers said. They added that he sought to return to the U.S. as quickly as possible but was unable to fly until Saturday night.

"Mr. Rajaratnam literally dropped everything in his life in Brazil," Vinoo Varghese, one of his lawyers, said.

Rajaratnam faces more than 100 years in prison if convicted.

In Depth

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel's Griffin Reaches Settlement in Contentious Divorce

Oct 8 2015 | 10:14pm ET

Billionaire hedge fund manager Ken Griffin and his wife have settled a long-running...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note