Raj Rajaratnam’s brother pleads not guilty to insider trading
New York: Imprisoned billionaire Sri Lankan American hedge fund boss Raj Rajaratnam’s younger brother Rengan Rajaratnam has been not guilty to insider trading charges.
Rajaratnam, 42, was accused of conspiring with his brother to trade on non-public information concerning Clearwire Corp and Advanced Micro Devices Inc in 2008.
Lawyers for Rengan Rajaratnam said their client learned through news reports that he had been charged, and volunteered to return immediately from Brazil, where he had lived and worked for the past year, to defend himself.
According to the New York Post, the government did not seek Rajaratnam's detention because he volunteered to U.S. authorities to return immediately to face the charges, Assistant U.S. Attorney David Massey said at the hearing in Manhattan federal court.
He remains free on a 1 million dollars bond secured by 500,000 dollars in cash and property, Massey said.
Rengan was 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, the report said.