Rajaratnam guilty of insider trading

The blockbuster trial of Galleon Group founder Raj Rajaratnam ended with convictions on all 14 counts of securities fraud and conspiracy. The guilty verdict marks the end of a court battle that started in early March, and featured 45 recorded calls showing how the hedge-fund manager trafficked in insider tips on America’s top businesses. The successful use of wiretaps, which normally are confined to drug and terrorism cases, likely paves the way for the tactic to become more common in cases revolving around financial wrongdoing. Rajaratnam will be under house arrest with electronic monitoring until he is sentenced on July 29. He faces up to twenty years on each of the nine convictions of securities fraud, and up to five years on each of the five convictions of conspiracy to commit securities fraud.

Wall Street Journal