New York (HedgeCo.Net) – Rengan Rajaratnam has pleaded not guilty in NY court to charges of conspiring in an insider trading scheme to illegally earn nearly 1.2 million. He has been charged with conspiring with his older brother, the imprisoned hedge fund manager Raj Rajaratnam, to cheat on Wall Street and earn nearly $1.2 million illegally.
“It is unclear whether Rengan Rajaratnam has offered to cooperate with the government as part of any plea agreement or whether the talks will even result in him pleading guilty to insider trading charges. But one of the reasons the government could be interested in the younger Rajaratnam is that he could assist lawyers if the government gets close to building a case against SAC Capital Advisors, the hedge fund behemoth founded by trader Steven A. Cohen.” The NYT reports.
Rengan voluntarily surrendered, his lawyer said, flying in from Brazil the day before the hearing. He was released on $1 million bail after Monday’s court appearance.
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.
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