Two years after he was convicted of insider trading, Raj Rajaratnam is still trying to clear his name.
Yesterday, Rajaratnam, who in 2011 was sentenced to 11 years in prison for masterminding one of the biggest insider trading schemes in history, asked the 2nd Circuit to rehear his case just one month after it upheld his conviction.
“Rehearing is warranted because the panel’s decision in this case, which involves a significant expansion of the use of wiretaps, squarely conflicts with the decisions of other circuits,” appeals lawyers Paul Clement, Samidh Guha and Patricia Millet argued on behalf of Rajaratnam.
Rajaratnam’s case was the first to focus exclusively on insider trading in which U.S. investigators wiretapped targets’ phone conversations. Rajaratnam and his lawyers argue that the 2nd Circuit should rehear his case because if his conviction remains in place, investigators will have “carte blanche to wiretap any professional investor whose business entails discussing publicly traded companies on the telephone.”
Read more about Rajaratnam and other insider trading scandals on InsideCounsel: