Galleon Employees On The Lookout For New Jobs, Legal Advice

Oct 22 2009 | 1:07pm ET

Employees of the Galleon Group are preparing for life after the New York-based hedge fund with a flurry of calls to recruiters, potential employers and, in some cases, lawyers.

Galleon announced it would close its hedge funds yesterday, five days after founder Raj Rajaratnam was arrested as part of an insider-trading sweep. While Rajaratnam has proclaimed his innocence and vowed to try to keep Galleon’s trading team together, many at the firm at not waiting for the other shoe to drop.

“We have been flooded with calls from very nervous individuals at the firm who are trying to secure alternative employment,” one recruiter told Reuters. Another said, “People are afraid of being stigmatized by being associated with Raj.”

Employees at Galleon were preparing for the future even before the firm announced it would close its doors. But some at the firm may have even bigger worries, taking time this week to seek legal advice, Bloomberg News reports. Federal prosecutors plan to charge at least 10 more individuals in the alleged $20 million insider-trading ring this week; it is unclear if any of those to be charged have ties to Galleon.

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