New York (HedgeCo.net) – Hedge fund manager Raj Rajaratnam is charged with 14 counts of conspiracy and securities fraud. He is accused of making $45 million in illicit profits between 2003 and March 2009 on leaked stock tips from highly placed sources in corporate America.
Reuters – FBI agent James Barnacle marched the jury through dozens of charts and records of phone calls, some of which were taps on Rajaratnam’s mobile phone. With the help of a calculator on the witness stand, Barnacle tabulated profits made by Rajaratnam’s Galleon Group, saying that Rajarat’s hedge fund Galleon made a profit of about $22.9 million in one of the trades, ATI.
Bloomberg – U.S. District Judge Richard Holwell granted a defense request to bar prosecutors from offering as evidence videotapes of ex-Intel Corp. executive Roomy Khan faxing him documents in 1997 and 1998. Holwell said the videotapes would have been unfair to Rajaratnam and had “diminished probative value.” Prosecutors wanted to use them to support a claim that Khan leaked inside tips to Rajaratnam in 2006 and 2007. Holwell said prosecutors may use other evidence to prove that charge.
Wall Street Journal – As part of the FBI agent’s testimony, prosecutors also showed the jury an instant message from April 19, 2006, in which Mr. Rajaratnam tells a hedge-fund manager in a fund he is invested in that the manager should “buy some ATYT,” the stock symbol for ATI at the time. The FBI agent also testified about his review of phone records between Rajiv Goel, a former manager in Intel Corp.’s treasury department and a cooperating witness in the case, and Rajaratnam ahead of Intel’s earnings announcement in April 2007. Goel, who pleaded guilty last year to conspiracy and securities fraud, testified earlier in the trial that he gave Rajaratnam details about Intel’s earnings before they were publicly announced.
The agent testified that Rajaratnam sent an instant message to his trader at Galleon on April 9, 2007, about an hour after receiving a phone call from Mr. Goel. The message said “short 1 million INTC,” referring to Intel’s stock symbol, the agent said.
New York Times – The trade made Galleon more than $4 million, Khan more than $630,000 and Goel about $78,000, prosecutors claimed.
Alex Akesson
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