New York (HedgeCo.net) – The largest hedge fund insider trading case in US history has gotten underway, raising more questions than answers on where the boundaries of business lie.
Bloomberg – U.S. District Judge Richard Holwell in Manhattan swore in 12 jurors and six alternates yesterday for a trial he said may last 2 1/2 months. The panel was chosen from a pool of about 300 from New York City and surrounding counties. Teachers, retirees, municipal workers and a Federal Reserve employee were among the 18 jurors chosen.
Reuters – Prosecutors yesterday introduced the first three wiretap recordings of the hedge fund co-founder. Conversations between Raj Rajaratnam and his alleged co-conspirators were played for a jury, one day after opening statements.
Forbes – In yesterday’s opening statements, defense lawyers attacked the credibility of the prosecution’s witnesses telling jurors that they’ve only agreed to testify to “save their skins.” In other words, the defense lawyers are claiming the prosecution has promised leniency to the witnesses many of whom have plead guilty to related charges. “They are on a leash. The prosecution holds the keys to the jailhouse,” said lead defense lawyer John Dowd.
WSJ – Appearing before a packed federal courtroom in lower Manhattan during the first day of testimony, witness Anil Kumar, a former consultant at McKinsey & Co, said Rajaratnam had paid him $500,000 a year through an offshore account for inside information.
Courthouse News Services – The judge read from a list of more than 50 companies, including Rajaratnam’s Galleon hedge fund, as well as Atheros, Aegis, Blackstone, Goldman Sachs, Sun Microsystems and others. Another list of more than 90 people who could be mentioned or might be witnesses in the case included Goldman Sachs CEO Lloyd Blankfein, who is expected to testify, and witnesses Roomy Khan, Ali Far, and Anil Kumar. Danielle Chiesi, who pleaded guilty to insider trading in January, is not expected to testify, under her plea agreement.
Rajaratnam has pleaded not guilty to conspiracy and security fraud charges in what prosecutors have billed as the largest hedge fund insider trading case in history.
Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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