Federal Grand Jury Accused Rajaratnam and Chiesi For Fraud And Conspiracy (PLCM, AKAM, GOOG, IBM)
December 16, 2009 10:25 AM
The Galleon Group LLC founder Raj Rajaratnam and Danielle Chiesi, an executive at New Castle Funds LLC, were accused by a federal grand jury of insider trading to profit from stock trades.
According to Bloomberg, both of them were accused for security frauds and conspiracy stemming from the trades that allegedly generated more than $20 million in illegal profits. It cites multiple schemes dating to 2003 and says the two used secret tips to trade in the stocks including Polycom Inc. (NASDAQ: PLCM)(FREE stock trend analysis), Hilton Hotels Corp, Akamai Technologies Inc. (NASDAQ: AKAM)(FREE stock trend analysis), Google Inc. (NASDAQ: GOOG)(FREE stock trend analysis) and International Business Machines Corp. (NYSE: IBM)(FREE stock trend analysis).
