New York: The FBI has arrested 14 people for
alleged involvement in what prosecutors say was the largest
hedge-fund insider trading scheme ever on Wall Street,
prosecutors in New York said on Thursday.
Manhattan US Attorney Preet Bharara said 14 people,
"including attorneys and Wall Street professionals" were
arrested "for their alleged involvement in insider trading
that netted 20 million dollars."
The hedge fund, Galleon Management LP, was shut down last
month after founder Raj Rajaratnam was indicted in the alleged
scheme. He faces up to 20 years in prison for allegedly using
insider information on companies including Google, IBM and
Hilton.
Five others were charged along with Rajaratnam.
Rajaratnam's fund was estimated to be worth USD 3.7
billion when it was shut down. The entrepreneur featured on
Forbes magazine's world list of billionaires this year in the
559th spot.
Bureau Report
First Published: Thursday, November 05, 2009, 23:42