U.S. top court declines to hear Rajaratnam appeal

WASHINGTON Mon Jun 16, 2014 7:21pm IST

Galleon hedge fund founder Raj Rajaratnam (L) departs Manhattan Federal Court after his sentencing in New York October 13, 2011. REUTERS/Lucas Jackson/Files

Galleon hedge fund founder Raj Rajaratnam (L) departs Manhattan Federal Court after his sentencing in New York October 13, 2011.

Credit: Reuters/Lucas Jackson/Files

Stocks

   

WASHINGTON (Reuters) - The U.S. Supreme Court on Monday left intact the insider trading conviction of Galleon Group hedge fund founder Raj Rajaratnam.

The court declined to hear Rajaratnam’s appeal, meaning a June 2013 decision by the 2nd U.S. Circuit Court of Appeals in New York upholding the conviction is the final word in the case.

The appeals court rejected Rajaratnam’s argument that wiretap evidence was used improperly to convict him.

Rajaratnam is serving an 11-year prison term. A federal jury convicted him in May 2011 of nine counts of securities fraud and five counts of conspiracy.

The government said Rajaratnam, whose firm once managed $7 billion, made as much as $63.8 million in illicit profit from 2003 to March 2009 trading on stocks including eBay Inc, Goldman Sachs Group Inc and Google Inc.

Prosecutors said the Goldman trades included trades during the 2008 financial crisis, just after Rajaratnam got a tip from Goldman director Rajat Gupta of an infusion in the bank from Warren Buffett's Berkshire Hathaway Inc.

An insider trading trial involving charges against Rajaratnam’s younger brother Rengan, is expected to begin on Tuesday, also in Manhattan federal court. Since October 2009, 81 people have pleaded guilty or were convicted at trial in insider trading cases in Manhattan.

The case is Rajaratnam v. United States, U.S. Supreme Court, No. 13-1001.

(Reporting by Lawrence Hurley; Additional reporting by Nate Raymond and Jonathan Stempel; Editing by Howrad Goller)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Fuelling Change

REUTERS SHOWCASE

NSEL Fraud

NSEL Fraud

Govt orders Financial Tech to absorb NSEL, liabilities  Full Article 

Stalemate

Stalemate

WTO prepares for crisis talks as India keeps veto on global deal.  Full Article 

Deal Talk

Deal Talk

Smartphone repair company B2X steps up expansion with Indian deal.  Full Article 

Earnings Season

Earnings Season

HDFC Bank eyes pickup in corporate credit.  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

Iron Ore Imports

Iron Ore Imports

JSW Steel to boost iron ore imports by up to 80 percent.  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Remembering Margerie

Remembering Margerie

Total’s "Big Moustache"- bon vivant, deal-maker and risk-taker .  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage