Rajaratnam Brother Rejects Plea Deal

Jun 2 2014 | 6:30am ET

Galleon Group founder Raj Rajaratnam’s brother has been on a winning streak—and he’s pressing his luck.

Rengan Rajaratnam has rejected a proposed plea agreement, prosecutors said Friday. The younger Rajaratnam, who is accused of illegally trading with his brother, is set to go on trial later this month. The elder Rajaratnam was convicted of fraud three years ago and is serving an 11-year sentence.

In recent weeks, prosecutors have dropped four of the seven charges against Rengan Rajaratnam. Terms of the proposed plea were not disclosed.

Rajaratnam worked at Galleon and is accused of conspiring with his brother to trade shares of Clearwire Corp. and Cisco Systems in 2008 based on insider information. He returned to the U.S. from Brazil to face the charges, and has denied wrongdoing, arguing that prosecutors have not alleged that he knew his alleged tipsters benefitted personally by passing confidential information.

Lawyers for both sides and the judge also discussed evidentiary matters during Friday’s hearing, with Rajaratnam’s lawyer saying it would be all-but impossible to avoid mention of Raj Rajaratnam’s conviction. “The name Rajaratnam is now synonymous, unfortunately, with this kind of case,” Daniel Gitner said.

U.S. District Judge Naomi Reice Buchwald appeared to agree with that assessment, and prosecutors said they did not oppose evidence about the elder Rajaratnam’s conviction.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.