Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Sunday, April 10, 2011

Raj Rajaratnam Trial: Prosecution Rests in Week 5

The prosecution completed its case on Wednesday.  The testimony this week consisted of more taped phone conversations, this time between Raj Rajaratnam and Danielle Chiesi, the former hedge fund trader who pleaded guilty to securities fraud earlier this year, involving Akamai Technologies.  On Tuesday and Wednesday, a FBI agent walked the jury through the trades and testified that RR's profits and avoided losses totalled $63.8 million.  In all, the government introduced 18 witnesses and 45 tapes of telephone conversations in their case.   For a good summary of the government's case, see Peter Lattman, Prosecution Rests Its Case in Galleon Trial 

The defense begins to present its version of events on Monday.  On April 8, the parties were in court arguing whether University of Rochester business professor (and former SEC chief economist) Gregg A. Jarrell could testify that publicly available information could explain Galleon's investment decisions.  In the view of the prosecution, this would infringe on the jury's right to determine materiality.  The judge ruled he could testify with some restrictions.  For a good preview of the defense's straegy, see WSJ, Defense Offers Glimpse of Strategy.

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