By Meena Kar,
October 17, (THAINDIAN NEWS) Galleon Group founder, Raj Rajaratnam has been reportedly arrested by the authorities. He was arrested with the charges of insider trading. BBC reported that five executives from topmost US companies were arrested along with Raj Rajaratnam. They also have the same charges against them. Mr. Rajaratnam and other five executives is said to have made a profit of approximately twenty million dollars from their illegal trading, reported the sources.

It was stated by sources, the alleged hedge fund owner along with others who have been charged on same grounds, had collected inside information regarding several big firms of the country. It has been reported by the media that they had collected information related to Hilton Hotels, AMD and Google. On the other hand, Galleon Group said that they did not have any kind of information regarding the investigations against Raj Rajaratnam. They stated that they were really shocked when they came to know about the arrest of Mr. Rajaratnam.

Arrest of Raj Rajaratnam is a shocking news indeed. It has shocked many investors as Mr. Rajaratnam being a billionaire did not reject calls of small investors. He was also known for his works for charity. Forbes had named him 236th richest man of the United States.

Apart from Mr. Raj Rajaratnam, other men who were arrested included people who were either executives or directors of prestigious companies. IBM and McKinsey & Co’s one of the directors, Anil Kumar and Intel Capital’s strategic investment director, Rajive Goel were arrested with the same charges. Other names in the list of arrested were Mark Kurland and Danielle Chiesi, Bear Stearns Asset Management’s former officials and Robert Moffat an executive. Mr. Rajaratnam’s name got added to the list of hedge fund owners who were arrested after the economic slowdown.