New York (HedgeCo.net) – Hedge fund founder Raj Rajaratnam was investigated by federal prosecutors ten years ago according to legal filings obtained by The Wall Street Journal. The paper reported that the prosecutors were unable to prove their allegations at the time.
The investigation started with suspicions in the 1990s when chip maker Intel Corp alleged that Rajaratnam was receiving tips from an Intel insider. The investigation was based on a witness who had first entered into a plea agreement with the United States before she began to cooperate in an investigation into Rajaratnam’s practices.
Rajaratnam was taken into custody in New York on Oct. 16, 2009 in the USA’s largest hedge fund insider-trading scheme. Rajaratnam said in regard to the charges, that, “They are, without exception, entirely baseless. I am innocent and will vigorously defend myself and our firm.” He is currently out on bail set at $100 million.
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