Wednesday, May 11, 2011
After eleven days of deliberation, the jury found Galleon founder Raj Rajaratnam guilty of all fourteen counts of fraud and conspiracy. RR could face up to 20 years in prison; an appeal is certainly expected. Meanwhile, it's a huge victory for the Manhattan office of the U.S. District Attorney and its crackdown on insider-trading on Wall St. In the end, the government's wire taps paid off; the jury heard portions of 45 taped telephone calls that were hard for the defense to explain away. Its defense, that the stock trades were based on due diligence and careful research, did not convince the jury.
For early coverage, see:
NYTimes, Galleon’s Rajaratnam Found Guilty