Raj Rajaratnam and the Galleon Group Scandal

Raj Rajaratnam's downfall began with the collapse of his hedge fund, Galleon Group, in 2009.

Rajaratnam was arrested in 2009 and charged with insider trading.

The investigation that led to his arrest was sparked by a former employee who wore a wire to record conversations.

Rajaratnam's defense team argued that he was simply a passive investor who didn't know the source of the tips.

Raj Rajaratnam's hedge fund, Galleon Group, was worth $7 billion.

He was a self-made millionaire who founded Galleon Group and became one of the world's largest and most powerful hedge funds.

Rajaratnam's success was built on a vast network of Wall Street insiders who provided him with inside information.

He tapped into this network to generate stellar returns for investors.

Rajaratnam's old friend Anil Kumar worked at McKinsey & Co. and became his personal consultant.

Kumar funnelled secrets about McKinsey's corporate clients to Rajaratnam in exchange for $500,000 a year.

Rajaratnam used offshore accounts and shell companies to conceal the payments to Kumar.

Kumar's consulting work for Advanced Micro Devices led him to learn about the company's secret bid to acquire ATI.

Armed with this information, Rajaratnam bought shares of ATI ahead of the acquisition.

The deal made ATI's stock soar by 25 percent, netting Rajaratnam $23 million.

Raj Rajaratnam was found guilty of perpetuating one of the largest cases of insider trading in history.

Federal agents tapped his phone, which was often ringing off the hook with calls from corporate insiders providing market-moving information.

Rajaratnam's phone calls were a key piece of evidence against him.

As the head of a $7 billion hedge fund, Rajaratnam's actions had far-reaching consequences.

He was ultimately held accountable for his actions, but not before his fund, Galleon Group, generated stellar returns for investors.

Rajaratnam's success wasn't built on his trading expertise alone, but rather on his vast network of Wall Street insiders who funneled him inside information.

For another approach, see: Steve Cohen Trading Stocks

The Raj Rajaratnam case was a major scandal in the world of finance, and it had far-reaching consequences. Rajaratnam was accused of conspiring with others in insider trading in several publicly traded companies, resulting in over $60 million in profits.

One of the key players in the case was Robert Moffat, a senior executive of IBM who was considered next in line to be CEO. Moffat allegedly provided Rajaratnam with confidential information, which helped fuel the insider trading scheme.

Rajaratnam's alleged accomplices included Anil Kumar, a senior executive of McKinsey, and Rajiv Goel, a midlevel Intel Capital executive. Both men were part of the same class as Rajaratnam at Wharton school.

The investigation into Rajaratnam's activities led to charges against several other individuals, including Tai Nguyen, the president of Insight Research. Nguyen was arrested and charged with insider trading in 2012 and later pleaded guilty to one count of conspiracy to commit securities fraud.

Here's a list of some of the key players involved in the Raj Rajaratnam case:

Raj Rajaratnam was arrested on Friday, October 16, 2009, by the FBI and accused of conspiring with others in insider trading in several publicly traded companies.

The total profits in the scheme were estimated to be over $60 million, making it the largest hedge fund insider trading case in United States history.

Rajaratnam allegedly profited from information received from several individuals, including Robert Moffat, a senior executive of IBM, and Anil Kumar, a senior executive of McKinsey and close friend of former CEO Rajat Gupta.

The individuals involved in the scheme were all part of the class of 1983 from Wharton school, including Rajaratnam, Goel, and Kumar.

Rajaratnam conspired to get confidential information on the $5 billion purchase by Warren Buffett's Berkshire Hathaway of Goldman Sachs preferred stock before the September 2008 announcement of that transaction.

Rajat Gupta, a former member of the board of directors of Goldman Sachs and former McKinsey & Company chief executive, was accused of telling Rajaratnam about Berkshire's investment before it became public.

Here are the individuals involved in the scheme:

Rajaratnam served seven and a half years of an 11-year sentence in prison.

After his release in the summer of 2019, he spent time writing about his experiences.

In December 2021, Rajaratnam published his memoir Uneven Justice, detailing the events surrounding his conviction and his criticisms of the US criminal justice system.

The book offers a unique perspective on the US criminal justice system, one that Rajaratnam gained firsthand.

Rajaratnam has also shared his thoughts on the strategies that led to his conviction, including an interview with Andrew Ross Sorkin on CNBC TV's Squawk Box.

Raj Rajaratnam was a billionaire investor and hedge fund manager who made headlines for all the wrong reasons. He was born in 1957 in Colombo, Sri Lanka.

Rajaratnam's father was a wealthy businessman who owned a textile mill, which helped to lay the groundwork for Rajaratnam's future success. His family's wealth and influence also provided him with access to quality education.

Rajaratnam earned a degree in electrical engineering from the University of Sussex and an MBA from the Wharton School at the University of Pennsylvania. He began his career as an investment banker at Bankers Trust.

Rajaratnam co-founded the hedge fund firm Quadrature Capital in 1989, but it wasn't until he founded Galleon Group in 1997 that he achieved significant success. Galleon Group was one of the largest and most successful hedge funds in the world at the time.

Rajaratnam was known for his aggressive and unorthodox investment strategies, which often involved insider trading. He was accused of using inside information to make trades and was eventually convicted of conspiracy and securities fraud.

Raj Rajaratnam's phone rang off the hook with calls from corporate insiders providing valuable market information. He founded Galleon Group, one of the world's largest and most powerful hedge funds, generating stellar returns for investors. His success wasn't built solely on trading expertise, but also on a vast network of Wall Street insiders funneling him inside information.

Rajaratnam's hedge fund, Galleon Group, was worth $7 billion. He had a network of corporate insiders providing him with valuable market information.

Rajaratnam's success was not just about his trading expertise, but also about his ability to tap into a vast network of Wall Street insiders. He made billions by using this information to make informed investment decisions.

Here are some of the key players involved in the scandal: