Hedge Fund News From HedgeCo.Net


Wiretap Evidence Challenged In Galleon Hedge Fund Case

New York (HedgeCo.net) – Hedge fund founder Raj Rajaratnam is again seeking to throw out the evidence gained by the prosecution’s wiretapping last year.

“In applying for wiretap permission in March 2008, an FBI agent failed to tell a judge about prior lengthy probes of his client by securities regulators and the FBI.” John Dowd, Rajaratnam’s lawyer, told the Manhattan federal court yesterday, according to Reuters.

In Feburary, Dowd attacked the U.S. government’s wiretap evidence saying he would file a motion to suppress the telephone recordings which were used to arrest Rajaratnam and more than a dozen other people in the Galleon raid. Rajaratnam then won an emergency order relieving him from having to turn over the recordings because of legal hurdles in obtaining the 14,000 intercepts.

“The recordings were cherry picked and mismanaged and someone did not do their homework.” Dowd told the Judge in the Feb hearing.

The hedge fund millionaire 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 and his co-defendant, Danielle Chiesi, face up to 20 years in prison if convicted on the charges.

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!

This entry was posted in HedgeCo News, Hedge Fund Fraud, Developing Stories. Bookmark the permalink.

Leave a Reply