Thursday, 5 May 2016
Last updated 8 hours ago
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.