Rengan Rajaratnam, the younger brother of Galleon Group founder Raj Rajaratnam, may be talking his way out of joining his older brother in prison.
Rengan has held plea talks with prosecutors, according to a letter from the latter. The U.S. Attorney's Office on May 30 asked U.S. District Judge Naomi Reice Buchwald for more time "to continue discussions that may lead to the resolution of this case before trial." Prosecutors wrote that they had turned over "significant" evidence to Rengan's lawyers "to facilitate plea discussions," and that both sides "agree that it would be very helpful to have additional time for these discussions."
Buchwald agreed to delay the conference, set for today, until July 30.
Possible terms of a plea deal, such as whether Rengan could avoid jail time, are unclear. Rengan has denied any wrongdoing in the case, in which prosecutors allege that he and his brother conspired to trade on confidential information about two technology stocks, earning them nearly $1.2 million in illicit profits in 2008.
Prosecutors charged Rengan in March as the statute of limitations deadline neared. Rengan returned to the U.S. to face the charges from Brazil, where he had been living and working.
Raj Rajaratnam is serving an 11-year sentence, following his conviction on insider-trading charges two years ago.