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U.S. cites cooperators in Galleon hedge fund case

Thu Nov 5, 2009 1:00am IST
 
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* U.S. asks judge to deny Rajaratnam bail requests

* Cooperating witnesses cited but not identified

By Grant McCool

NEW YORK, Nov 4 (Reuters) - Investigators of the hedge fund insider trading case against Galleon Group founder Raj Rajaratnam have more than one cooperating witness, U.S. prosecutors said in court papers on Wednesday.

In a request to a judge to deny Rajaratnam bail, U.S. prosecutors mention Roomy Khan, a convicted felon and former Intel employee cited in media reports as a cooperating witness and in an Oct. 29 letter to the court by Rajaratnam's lawyers.

"This attempt to undermine the Government's evidence falls flat," the prosecutor's brief in Manhattan federal court said.

"As the complaint itself makes clear, the defendant's assertion that the government's case hinges on a single witness is false," the brief by the office of the U.S. attorney in Manhattan said. "This case involves wiretap evidence of the defendant making incriminating statements that would be strong even absent the testimony of any cooperating witness.

"In addition, there is more than one cooperating witness against the defendant."

The document does not identify any cooperating witnesses and mentions Khan only by way of response to last week's letter by lawyers for Rajaratnam.  Continued...

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