Raj Rajaratnam, Bob Moffat Charged in Insider Trading

by Amy Judd | October 16, 2009 at 08:30 am

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Raj Rajaratnam, the Galleon Group founder has been charged along with five others today for their part in a $20 million insider-trading case. Raj Rajaratnam himself has been charged with four counts of conspiracy and eight of securities fraud.

Raj is the founder of the Galleon Group, worth $7 billion, but he is also the portfolio manager for the Galleon Technology Funds, but he is charged with Rajiv Goel, Anil Kumar, Danielle Chiesi, Mark Kurland and Robert Moffat.

The Security and Exchange Commission (SEC) was investigating illegal trading in top-tier companies such as Google and cloud-computing giant Akamai.

There is going to be a press conference at 1pm EDT today to discuss the case further.

Galleon Group has not responded publicly yet.

The allegations put Mr. Rajaratnam at the center of several insider trades in which he allegedly caused Galleon funds to act on inside information or passed along tips to others.

There is one case in which prosecutors accuse Mr. Rajaratnam of receiving nonpublic information about Polycom Inc and Google Inc, and then using Galleo funds to make trades - Galleon reportedly earned about 12.7 million from this deal.

This is just one of many allegations made.