Bloomberg Reports Federal Investigators On the Lookout For Galleon Links
October 19, 2009 7:48 AM
Bloomberg sources report that federal investigators are all set to probe insider-trading networks that may have links to billionaire hedge-fund manager Raj Rajaratnam.
Following two years of investigation, the crackdown by the federal agency includes hedge-fund managers, lawyers, and other Wall Street players. The methods of investigation included wiretaps and data from the Securities and Exchange Commission on investor trading patterns. The investigating agency has recorded conversations of Rajaratnam and other alleged conspirators, which proves their resolve to get to the bottom of insider-trading.
The founder of the Galleon Group hedge fund was arrested along with five others on Oct. 16th on charges of profiting from insider trading to the tune of $18 million. Jim Walden, Rajaratnam’s lawyer, denied that his client has opted for a plea bargain.
