Filed under: People , Investing With a mountain of evidence ranging from a cooperating witness to wiretapped confessions by an accomplice all but admitting guilt, prosecutors in the Galleon Group insider trading case might think they have an airtight case. But billionaire Galleon founder Raj Rajaratnam seems to be bracing for a fight. Last week Rajaratnam’s lawyers took to the offensive and succeeded in having cooperating witness Roomy Khan’s criminal background included in the hearings . Khan, a former employee of both Intel and Galleon, is a central witness against Rajaratnam. Khan has already pleaded guilty to trading on and passing on insider information as part of a plea agreement. Continue reading Galleon’s Raj Rajaratnam gears up for a legal showdown Galleon’s Raj Rajaratnam gears up for a legal showdown originally appeared on DailyFinance on Sun, 22 Nov 2009 19:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Galleon’s Raj Rajaratnam gears up for a legal showdown

Filed under: Economy , People , Investing , Media As the full extent of the Galleon Group’s insider trading comes to light, its story is starting to resemble something out of the movies. Although Raj Rajaratnam’s house has already been compared to the homes in both The Sopranos and Goodfellas , the sad truth is that the real-life criminal ring lacks both the class of Tony Soprano’s gang and the gravitas of Joe Pesci’s. As details emerge, the whole mess seems to fall closer to the cartoonish excess of Animal House . The central member of the gang — the Otter, if you will — may well be Zvi “The Octopussy” Goffer. Robert Khuzami, director of the Securites and Exchange Commission’s Division of Enforcement , noted Thursday that Goffer got his James Bond-originated nickname “because of his reputation for having arms in so many sources of inside information.” Goffer used his web of spies to cut trades both at Galleon and at his previous employer, the Schottenfeld Group. Continue reading The goofy Galleon gang: Wacky hedgies play cops and robbers…with real cash! The goofy Galleon gang: Wacky hedgies play cops and robbers…with real cash! originally appeared on DailyFinance on Fri, 06 Nov 2009 14:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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The goofy Galleon gang: Wacky hedgies play cops and robbers…with real cash!

Filed under: JP Morgan Chase , Dell , Google , Apple , Bank of America , Cisco Corp Galleon Holdings, the $3.7 billion hedge fund whose founder, Raj Rajaratnam is out on $100 million bail for his role at the center of a $20 million insider trading scandal, owns big positions in dozens of public companies whose stock and management teams could be in trouble. Of course, Galleon’s stakes in these companies are only a problem if any of their employees have followed the same process of tipping Galleon as the public companies I posted about here allegedly did. How so? If Galleon is liquidated, its holdings are likely to be sold, and although the positions are a relatively small proportion of their total market capitalizations, if those companies have moles inside who fed information to Galleon, those companies will be embroiled in investigations which could at least distract top management. At worst, it could lead to high level firings. Continue reading Insider trader could rock boardrooms from Silicon Valley to Wall Street Insider trader could rock boardrooms from Silicon Valley to Wall Street originally appeared on DailyFinance on Sun, 18 Oct 2009 16:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Insider trader could rock boardrooms from Silicon Valley to Wall Street