New York (HedgeCo.net) – The US Supreme Court has rejected Raj Rajaratnam’s appeal.

Rajaratnam, who co-founded hedge fund Galleon Management and Chiesi, a former trader with New Castle Funds, face up to 20 years in prison if convicted on the charges. Rajaratnam was taken into custody in New York on Oct. 16, 2009 in what is being called the USA’s largest hedge fund insider-trading scheme.

The Justice Department urged the court to stay out of the case and leave the conviction in place. Any alleged error in the jury instructions was harmless because there was “overwhelming evidence” that Mr. Rajaratnam’s trades “were the direct and immediate result of his receipt of inside information,” the department said.

The Second U.S. Circuit Court of Appeals in New York affirmed Mr. Rajaratnam’s conviction last year, saying his arguments were unpersuasive.

WSJ said: The Supreme Court let that ruling stand without comment. “The court’s action comes the week after it rejected a plea from former Goldman Sachs director Rajat Gupta to remain free on bail while he continues to challenge his conviction for passing along inside information to Mr. Rajaratnam.”

Rajaratnam is being accused of insider trading and securities fraud, generating as much as $49 million in profit.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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