Posted May 11, 2011 03:07 pm CDT
Galleon Group co-founder Raj Rajaratnam has been convicted of all counts in the largest insider trading case to date involving hedge funds.
Federal jurors in Manhattan convicted Rajaratnam today on nine counts of fraud and five counts of conspiracy, report the New York Times DealBook blog and the Associated Press. He was accused of gaining more than $63 million through insider trading.
Prosecutors relied on 45 taped conversations in which Rajaratnam coaxed corporate tipsters and fellow traders to give him helpful information. Authorities said it was the most extensive use of wiretaps ever in a white-collar case, AP says.
Rajaratnam’s lawyer, John Dowd of Akin Gump Strauss Hauer & Feld, had argued his client was trading on information that was public knowledge. Dowd also claimed tipsters who testified against Rajaratnam were liars who got a “free ride” from the government for their testimony.
Rajaratnam could be sentenced to up to 25 years in prison. He is expected to appeal, the Times says.
Dowd, 70, told CNBC after the first day of closing arguments that the trial will be his last. “It’s a young man’s game,” he said.