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Post/wire say Rajaratnam remains in SEC's field of view

2014-07-09 07:12 ET - In the News

The Financial Post reports in its Wednesday edition Rengan Rajaratnam, the younger brother of convicted Galleon Group founder Raj Rajaratnam, was cleared on Tuesday of conspiring to engage in insider trading while at the hedge fund. A Reuters dispatch to the Post says the verdict ends a five-year winning streak by U.S. prosecutors. After deliberating for less than four hours, a federal jury in New York found Rengan Rajaratnam, a former portfolio manager at Galleon, not guilty of the one conspiracy count. The verdict came three years after jurors in the same courthouse convicted Raj Rajaratnam, 57, for an insider trading scheme that resulted in $63.8-million (U.S.) in illicit profit. He is serving an 11-year prison sentence. Before Tuesday, a crackdown on insider trading led by Manhattan U.S. Attorney Preet Bharara's office had resulted in the conviction of 81 people with no acquittals since October, 2009. Several jurors said prosecutors failed to show Rengan Rajaratnam knowingly conspired with his brother. "By the end, we were all like, 'Where's the evidence?'" said juror Catherine Wolcott. While Rengan Rajaratnam was not convicted of criminal charges, there is a pending civil lawsuit by the SEC.

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