Judge Sees Flaws In Case Against Rajaratnam's Brother

Mar 28 2014 | 9:30am ET

For prosecutors, the trial of Raj Rajaratnam's younger brother is off to a rocky start, even before it actually begins.

The federal judge presiding over the insider-trading case against Rengan Rajaratnam suggested that two of the seven counts against the former Galleon Group employee are based on a "very strained" argument and should be dismissed ahead of the June trial. U.S. District Judge Naomi Reice Buchwald yesterday said the counts related to Raj Rajaratnam's purchase of Clearwire Corp. shares in 2008 were based on a flawed reasoning.

The judge directed prosecutors to "discuss it with others at a higher pay grade."

Rengan Rajaratnam was charged last year with conspiring with his brother to illegally trade shares of Clearwire and Cisco Systems. He denies the allegations and has asked for all of the counts to be dismissed, arguing that prosecutors failed to allege that his supposed tipsters benefitted personally by passing confidential information.

Buchwald said she would rule on that motion at a later date.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note