Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Billionaire Hedge Fund Founder Guilty Of Insider Trading, Fraud
By
Jen Chung
Published May 11, 2011
Modified May 11, 2011
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
AP
By
Jen Chung
Published May 11, 2011
Modified May 11, 2011
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
After nearly two months of testimony and 11 days of deliberations, a jury found the billionaire co-founder of the Galleon Group hedge fund guilty of all charges related to what had been described as the "biggest insider trading ring in a generation": Raj Rajaratnam was convicted of 14 counts o securities fraud and conspiracy. The NY Times called him the most prominent figure convicted in the government’s crackdown on insider trading on Wall Street" while the Post declares it "a major victory for the government’s largest battle against illegal trading since Rudy Giuliani took on Michael Milken in the 1980s."
Graphic from the Wall Street Journal
The trial featured dozens of recordings with Rajaratnam receiving insider tips. Former Galleon employees also testified that Rajaratnam received revenue numbers from various top business executives before the earnings numbers were made public.
According to the Wall Street Journal, "The jurors all looked serious, some looking down. When the judge's deputy polled the jury to see if it was their verdict, the last jurors said 'Yes,; very loudly. Juror Leila Gorman Gonzalez, swiping a subway card to get on a train a block from the courthouse, said of the verdict, 'There was just a lot of evidence.' She said she was 'relieved' that the trial was over, and declined to comment further." See that, fat cats accused of misdoings—people who take the subway will be on your juries (hipsters, too).
Rajaratnam, who had a net worth of over $1 billion in 2009 and who faces up to 19 1/2 years in prison, is expected to appeal, and prosecutors have asked that he be held in custody, because he is a flight risk ($100 million bail aside, he has foreign properties). A Wayne State law professor and former federal prosecutor, Peter Henning, told Bloomberg News, "He joins the pantheon of Ivan Boesky and Gordon Gekko."
Tagged
billionaire
fat cat
fraud
galleon group
insider trading
justice department
raj rajaratnam
securities conspiracy
u.s. attorney
wall street
Jen Chung
Jen Chung is a former WNYC and Gothamist editor.
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
NJ Gov. Sherrill vetoes 2 bills meant to give strapped Jersey City more revenue tools
City leaders are still trying to close a historic budget shortfall.
By
Michael Sol Warren
Published Sep 29, 2026 at 2:21 p.m. ET
Brooklyn residents displaced after facade falls off neighboring building amid nor'easter
Parts of the stucco siding of a six-story apartment building in Prospect Lefferts Gardens fell off on Saturday, displacing neighbors.
By
Catalina Gonella
News
Brooklyn residents displaced after facade falls off neighboring building amid nor'easter
Parts of the stucco siding of a six-story apartment building in Prospect Lefferts Gardens fell off on Saturday, displacing neighbors.
By
Catalina Gonella
Mamdani opts not to define antisemitism in report to combat Jewish hate crimes
By
Elizabeth Kim
Police are still investigating bike crash that killed dad of 2 in Central Park
By
Brittany Kriegstein
NYC has a plan to stop homeless people from cycling between hospitals and the streets
By
Karen Yi
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .