Rajaratnam Brought Down By Wiretaps, Old Friends

For Raj Rajaratnam, the Galleon Group founder accused of insider trading, making money on non-public information wasn’t just a small part of his multi-billion dollar hedge fund empire. According to authorities, it was his bread-and-butter.

“He is not the astute student of company fundamentals or marketplace trends that he is widely thought to be,” Robert Khuzami, head of enforcement at the Securities and Exchange Commission, said Friday after Rajaratnam’s arrest. “His is not a master of the universe but rather a master of the Rolodex.”