The founder of the Galleon Group Raj Rajaratnam has been arrested along with five others for their involvement in a $20 million insider-trading fraudulent business scheme.
Federal prosecutors have charged the billionaire Raj Rajaratnam along with five others for a trading fraud. The names of the five others who were accused of trade fraud include:
Rajiv Goel, Director Strategic investment at Intel Capital, Anil Kumar who worked as a director at Mckensey and Co, Robbart Moffat who worked as an IBM executive, and former official at Bear Stearns Asset Management Danielle Chiesi and Mark Kurland.
According to the prosecutors, they acquired court approval to tape Raj’s cell phone and two of Chiese’s landlines and hence started their initial investigation in March 2008. The conversations revealed Raj’s attempt to secretly attain information about the trading of big shots of the stock exchange. According to the court reports, the six were involved in transferring secrets and inside information about the shares of companies like Google Inc, Advanced Micro Devices Inc., Polycom Inc, and Hilton Hotel Corp. Danielle Chiesi was an employee at New Castle. She received the secret information from Raj Rajaratnam and Robbart Moffat and this information made New Castle to earn a profit of more than 2.4 million U.S. Dollars.
A press conference will be held by the U.S. Attorney Preet Bharara today in Manhattan to discuss the case.
Five of the accused persons were arrested in New York City while Rajiv Goel was arrested in California. Those who were arrested in New York City will appear in the Manhattan Court today.
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