Raj Rajratnam became a god in himself as made billions by pinpointing the stocks that are going to be hot. 559th wealthiest man on earth, he is also a philanthropist.In a tables turned moment he was caught by the authorities on the charges that the wealth accumulated by him was by using unfair means or to be precise by Insider Trading. He was apprehended as he was about to fly to London, sniffing the news that FBI is following his activities. Five others have also been caught as his co-conspirators including Bob Moffat who was SVP at IBM. The case against Raj Rajratnam is being labeled as the biggest insider trading scam in history. FBI charged him on 13 counts of scam and conspirating to amass wealth. His firm Galleon Inc. was giving investors a huge 22% return.The company is charged to have been making money through insider information leaks by the people like Bob Moffat.
Rajiv Goel, Raj’s accomplice passed him insider information about Intel. As Intel was about to invest in an internet services provider, Raj bought the shares of the firm, making millions from the deal. Robert Moffat in a similar move provided insider information about the Intel and AMD co-operation.
As information about Hilton being acquired by Blackstone was leaked to Raj, he invested heavily in Hilton shares. That deal alone is said to have resulted in $4millions in profits to Raj.
As New York Prosecutors analyzed the case, the have regarded it as a “wake up call” to Wall Street. Authorities are believed to be eavesdropping on Raj’s telephone calls and his accomplices for months. The eavesdropping warrants were issued by the court of justice and it is the first time that the calls were being tapped by obtaining a proper warrant.
Bob Moffat
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