New York: Raj Rajaratnam, the Sri Lanka-
born US billionaire charged in the largest ever hedge-fund
insider trading case in America, has now been dragged to court
for allegedly financing the LTTE for over seven years through
a fake charity.
In a federal lawsuit, 30 people, who claim to be
victims of LTTE actions, from New Jersy alleged that the
52-year old Rajaratnam, provided financial support to the
Tamil Tigers from 2000 to 2007.
However, Rajaratnam`s lawyer Jim Walden has dismissed
the charges as "flatly untrue and libellous".
"We are confident that the court will dismiss these
baseless charges.
"Rajaratnam has the greatest sympathy for all victims
of violence in Sri Lanka and has a long history of helping Sri
Lankans of all ethnic groups through substantial charitable
donations over many years," he said in a statement.
Rajaratnam is the founder of US hedge fund firm
Galleon Group.
The lawsuit alleged that from 2000 to 2007, Rajaratnam
gave more than USD five million to a US-based charity, called
the Tamil Rehabilitation Organisation. It was blacklisted by
the US in 2007 for raising money for the Tamil Tigers.
Rajaratnam, one of richest men in America, was last
week charged in a USD 20 million hedge fund insider trading
case.
He is the richest Sri Lankan with an estimated
net worth of USD 1.3 billion. Rajaratnam is a major investor
in the Lankan stock market and has large stakes in blue-chip
companies. Forbes magazine places the hedge fund owner as the
559th wealthiest individual in the world.
Court documents reveal that Rajaratnam is facing 13
charges, four counts of conspiracy and eight counts of
security fraud.
Out of the USD 20 million, Rajaratnam allegedly made
USD 12.7 million in illegal profits for Galleon Group, the
hedge fund with up to USD seven billion in assets under its
management.
However, prior to the recent accusations, Rajaratnam
has been investigated by federal authorities for allegedly
funding the LTTE.
In a case in US District Courtin Brooklyn,
Rajaratnam`s name was cropped up in connection with funnelling
money to the militants through a fake charity.
The counsel for the plaintiffs from the Motley Rice
law firm, Michael Elsner, said, "The defendants, we allege,
have the plaintiffs` blood on their hands because those who
paid for murder are just as culpable as those who committed
the acts."
Bureau Report
