Galleon Case Shows Lengths Feds Go To During Investigations

One of the largest insider trading cases ever began to unspool in October 2009 with the arrest of Raj Rajaratnam, founder of the Galleon Group hedge fund. Prosecutors allege Rajaratnam was at the heart of a massive insider trading scheme that illegally generated more than $50 million. Galleon, which had almost $3.7 billion in investments, was liquidated within weeks.

Rajaratnam and 20 others--traders, lawyers and corporate executives--were charged in October and November with a litany of criminal and civil violations. So far 10 defendants have been indicted, 10 have pleaded guilty and one is at large.

Contributing Author

Steven Andersen

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