Hedge Fund News From HedgeCo.Net


Hedge Fund Managers Agree To Testify Against Rajaratnam In Exchange For Leniency

New York (HedgeCo.net) – Two ex-Galleon hedge fund managers pleaded guilty yesterday to insider trading. Adam Smith agreed to testify against Galleon hedge fund founder Raj Rajaratnam in exchange for protection from prosecution for other crimes.

Michael Cardillo also pleaded guilty to the same charges. The ex-hedge fund managers agreed to give up any money they made, and Cardillo also agreed to testify against Rajaratnam next month. Smith and Cardillo could face up to 20 years in prison on the securities fraud counts.

Rajaratnam’s co defendant Danielle Chiesi also pleaded guilty last week. She was accused of receiving insider information from Robert Moffat, Jr., who also pleaded guilty in the Galleon hedge fund fraud scheme.

Rajaratnam was taken into custody in New York on Oct. 16, 2009 in what is being called the USA’s largest hedge fund insider-trading scheme. He stands accused of insider trading and securities fraud, generating as much as $49 million in profit. The majority of the stocks involved are in technology, including, IBM, Intel, Akamai Technologies Inc, Polycom Inc, Hilton Hotels Corp, Google Inc, Sun Microsystems Inc SUNW.TI, Clearwire Corp, Advanced Micro Devices, ATI Technologies Inc and eBay Inc.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

Related Posts Plugin for WordPress, Blogger...
This entry was posted in HedgeCo News, Hedge Fund Fraud, Developing Stories. Bookmark the permalink.

One Response to Hedge Fund Managers Agree To Testify Against Rajaratnam In Exchange For Leniency

  1. IBM’s Sr VP Robert (“Blabber Mouth”) Moffat can only wish he could get a twin prison cell for his Sweetie, Hot Lips Chiesi !

    IBM’s more pressing battle is the upcoming IBM PONZI RICO trial !!!

    Details & links —
    http://www.ibmTheWidowMaker.com
    Follow Twitter – http://www.Twitter.com/MadamePJBailey (IBM Widow)

Leave a Reply