New York (HedgeCo.Net) – The insider-trading lawsuit against Rengan Rajaratnam has been delayed for six months while his lawyer works on a separate criminal case. Rengan is the younger brother of the now imprisoned hedge fund billionaire Raj Rajaratnam.
“We sought a stay because the criminal case takes precedence and he has to devote his resources to it,” Varghese said in an interview after court (according to Bloomberg) . “He’s a small guy, not like his brother. He doesn’t have a legion of attorneys and has to focus all of his efforts on the criminal matter.”
Rengan Rajaratnam has pleaded not guilty in NY court to charges of conspiring in an insider trading scheme to illegally earn nearly 1.2 million. He has been charged with conspiring with his older brother Raj, to cheat on Wall Street and earn nearly $1.2 million illegally.
Rengan voluntarily surrendered, his lawyer said, flying in from Brazil the day before the hearing. He was released on $1 million bail after Monday’s court appearance.
Rengan was also a portfolio manager at the hedge fund Galleon Group, and the trades for which he was charged resulted in nearly 1.2 million dollars of illegal profit, according to prosecutors. The defendant was charged with six counts of securities fraud and one count of conspiracy, and faces up to 20 years in prison on each of the fraud counts.
Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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