New York (HedgeCo.Net) – The District Court in New York has filed a motion to dismiss insider trading charges against Rengan Rajaratnam, the younger brother of the now imprisoned hedge fund billionaire Raj Rajaratnam
The New Yorker was charged with conspiracy to commit securities fraud and six counts of securities fraud. He has been charged with conspiring with his older brother Raj, to cheat on Wall Street and earn nearly $1.2 million illegally.
Rengan was also a portfolio manager at the hedge fund Galleon Group, and the trades for which he was charged resulted in nearly 1.2 million dollars of illegal profit, according to prosecutors. The defendant was charged with six counts of securities fraud and one count of conspiracy, and faces up to 20 years in prison on each of the fraud counts.
Rengan voluntarily surrendered, his lawyer said, flying in from Brazil the day before the hearing. He was released on $1 million bail. His brother, a Sri Lankan-born American who founded the New York hedge fund Galleon Group, was found guilty on 14 counts of conspiracy and securities fraud in May 2011. He is currently serving an 11-year prison sentence.
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