New York: Seven traders and lawyers have
pleaded not guilty to the USD 52 million insider trading scam,
one of the largest in American history, in which Sri
Lankan billionaire Raj Rajaratnam is alleged to be the
ringleader.
The seven, including former stock trader Zvi Goffer
described as "Octopussy" by regulators, pleaded not guilty
Tuesday in front of Judge Richard Sullivan in a Manhattan
Federal Court.
They stand accused of securities fraud.
Multi-billionaire and Galleon Group founder, Rajaratnam,
52, was charged in the case in October. He received 13
charges, four counts of conspiracy and eight counts of
security fraud.
Galleon Group is a hedge fund with up to USD seven
billion in assets under management.
Out of illegal profits, Rajaratnam alone made USD 36
million from inside information, which is double the amount
originally calculated.
In December, Rajaratnam, the richest Sri Lankan pleaded
not guilty to all charges in the insider trading scandal that
involves USD 52 million.
This is the first case to use authorised wiretaps.
Rajaratnam wants the wiretaps evidence to be thrown out
on the grounds that their use has violated his constitutional
rights.
"People will probably ask just how pervasive is insider
trading these days? Is this just the tip of the iceberg?"
Preet Bharara, US Attorney said previously.
"We aim to find out."
Since then the case has grown to involve 21 people.
Eight accused have pleaded guilty in the case so far.
PTI
First Published: Thursday, February 04, 2010, 00:15