Prosecutors Drop Two Charges Against Rajaratnam Brother

May 5 2014 | 10:45am ET

The prosecutors leading the case against Galleon Group founder Raj Rajaratnam’s brother have seen the writing on the wall.

The U.S. Attorney’s Office in Manhattan said it would drop the two counts against Rengan Rajaratnam that U.S. District Judge Naomi Reice Buchwald in March called “very strained.” The allegations dealt with Galleon’s purchase of Clearwire Corp. shares in 2008.

Buchwald declined to dismiss those charges last month, allowing prosecutors to decide whether to proceed. They chose not to, they said in a letter to Buchwald on Thursday.

Rengan Rajaratnam was charged last year with conspiring with his brother, who is serving an 11-year prison sentence, to illegally trade shares of Clearwire and Cisco Systems. He denies the allegations, arguing that prosecutors failed to allege that his supposed tipsters benefitted personally by passing confidential information.

The two dropped charges leave five remaining against Rajaratnam. Buchwald last month denied his request to dismiss all of the charges.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.