Rajaratnam Bail Upheld, But Travel Restrictions Loosened

Nov 6 2009 | 2:47am ET

A federal judge has refused to cut accused insider-trader Raj Rajaratnam’s record-setting bail, but he will allow the Galleon Group founder to travel farther beyond New York City.

U.S. Magistrate Judge Theodore Katz yesterday told Rajaratnam’s attorneys that he did not “see a reason to revisit the monetary amount” of $100 million, which the hedge fund chief’s team had asked be cut to $25 million. But he did agree to allow Rajaratnam to travel freely within the U.S. Previously, he had been restricted to within 110 miles of New York.

The failed bid to lower Rajaratnam’s bail came on the same day that 14 other defendants joined the six existing defendants in the insider-trading case against Rajaratnam. Among those 14 are two with ties to Galleon, which is in the process of liquidating most of its hedge funds and winding down its business.

Prosecutors had opposed the lowered bail and looser travel restrictions, arguing that Rajaratnam, a dual U.S.-Sri Lankan citizen, could flee, noting that he was scheduled to fly to London on the day of his arrest three weeks ago.


In Depth

Q&A: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note