Saturday, 23 July 2016
Last updated 12 hours ago
May 19 2014 | 3:04pm ET
The case against Galleon Group founder Raj Rajaratnam's younger brother keeps shrinking.
About a month before Rengan Rajaratnam is to stand trial for alleged insider trading, prosecutors dropped two of the five remaining counts against him. Two other counts were dismissed two weeks ago, after the judge presiding in the case expressed skepticism about them.
Rajaratnam, who worked at Galleon and who is accused of conspiring with his brother to illegally trade shares of Clearwire Corp. and Cisco Systems in 2008, now faces only two counts of securities fraud and one of conspiracy.
Rajaratnam, who returned to the U.S. from Brazil to face the allegations, has denied any wrongdoing, arguing that prosecutors have not accused him of knowing that his alleged tipsters benefitted personally by passing confidential information.
Raj Rajaratnam was convicted of insider trading three years ago, as is serving an 11-year prison sentence.