Sri lankan-born Rajaratnam along with his co-conspirator Danielle Chiesi was indicted on Tuesday on charges of using non-public information from company executives to earn around $21 million in illegal profits, according to the 37-page indictment.
Sri Lanka-born billionaire Raj Rajaratnam's defence team on Wednesday told a US jury that his trading in Goldman Sachs was not based on insider information, but a great deal of research and discussion on the investment bank, especially during the financial crisis.
A US court has denied a bid by billionaire hedge fund founder Raj Rajaratnam, convicted in May this year on insider trading charges, to reverse the verdict handed by the jury in his case.
During the trial proceedings on Tuesday, John Dowd, Galleon Group founder Rajaratnam's defence lawyer, cross-examined Kumar, a former McKinsey & Co. partner who gave his direct testimony.
His conviction on insider trading charges exposed a "web of fraud and corruption that entangled many."
Former McKinsey director Anil Kumar on Friday testified against his ex-Wharton classmate and Sri Lankan-born billionaire Raj Rajaratnam in the biggest insider trading case to hit US courts in decades.
The sentence -- which some legal considered light -- seemed to be the result of the consideration by the court that Rajaratnam, 54, was apparently in poor health and despite being on the wrong side of the law, had contributed over the years to charities and for benevolent activities.
Raj Rajaratnam made $4 million on Hilton stock in a single day after allegedly getting tips.
According to Fox News, Sri lankan-born Rajaratnam along with his co-conspirator Danielle Chiesi -- both of whom were indicted on December 15 on charges of using non-public information from company executives to earn around $21 million in illegal profits, entered their pleas before US District Judge Richard Holwell in Manhattan.
The report by the Wall Street Journal said that this Tipper X is Thomas Hardin, a 32-year-old trader at hedge fund Lanexa Global Management.
Both the prosecution and defence made opening statements on the second day of the trial involving the Sri Lankan-born billionaire who faces charges of 14 counts of security fraud and conspiracy.
Raj Rajaratnam, the main accused in the largest hedge fund insider trading case in the United States history was on Wednesday found guilty on all 14 counts of securities fraud and conspiracy.
The US federal prosecutors have come up with fresh charges against Sri Lanka-born billionaire Raj Rajaratnam based on new information they received from co-defendants who pleaded guilty in what has been described as the largest insider trading scam in the United States' history.
In an interview to Newsweek magazine, Rajaratnam, who will serve 11 years in prison, said the US government wanted him to 'wear a wire' and tape his conversations with Gupta, former chief executive officer of McKinsey.
A US judge has ordered disgraced billionaire Raj Rajaratnam to pay over USD 92 million as penalty in the insider trading case filed against him by the US financial regulator, saying the "huge and brazen nature" of his fraud "cries out" for such an unprecedented fine.
Rajaratnam, 52, founder of the Galleon Group, was indicted on October 16 for insider trading. The litigants have accused him of knowingly financing the LTTE and providing it with other forms of support through front organisations.
Berkshire Hathaway's India-born top executive Ajit Jain was "shocked" to hear that his friend ex-McKinsey head Rajat Gupta had lost USD 10 million in an investment fund with Raj Rajaratnam, which he described as a "deliberate hanky panky" by the convicted hedge fund founder.
It's hard to fathom why billionaires like Rajaratnam stake their reputation for tiny additions to their wealth.
He might have presided over assets worth billions of dollars, but Raj Rajaratnam will have to work for 12 to 17 cents an hour cleaning the kitchen or the toilet in prison.
If convicted all of them face imprisonment of up to 20 years, according to the indictment, which reads that the defendants "routinely received inside information directly or indirectly from insiders and provided it to each other for the purpose of trading based on the information", filed in the US court.
Gupta began serving a two-year prison term on insider trading charges in June 2014.
Gupta lost his final bid to avoid reporting to jail after the US Supreme Court last week denied his application to remain free on bail while his insider trading case is reheard.
The Gupta case is SEC v. Gupta, US District Court, Southern District of New York, No. 11-07566.
Every accomplished major immigration group in America has had its heroes and fallen heroes.
Gupta, 66, is currently serving his prison term.
Also to be questioned under oath by lawyers of the SEC and Gupta is Greg Ormond of Exemplar Wealth.
The SEC however added that "dismissing these proceedings will not prevent the Commission from filing an action against Gupta in United States District Court."
He will be arraigned before US District Judge Jed Rakoff in the US District Court, Southern District of New York.
The central question of this insider trading case is whether the Sri Lankan born billionaire earned $45 million by using leaked confidential information.
Gupta began serving a two-year prison term on insider trading charges
Never invest in a company or an industry that you have never heard of even if you get a tip-off.
His prison term is set to end on March 2016.
Promoters and top executives intending to buy or sell shares of their companies might soon have to inform the market well in advance for such transactions.
Prominent Indian-American attorney Preet Bharara has no plans to quit as the chief federal prosecutor in Manhattan anytime soon as he has the "greatest job in the world" but said he will "walk the earth and get into adventures" whenever he retires.
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