Thaindian News

New York, Mar 10(ANI): A Sri Lankan born-American, who founded the Galleon Group, a New York-based hedge fund management, used “stolen business information to steal tens of millions of dollars”, a federal prosecutor said on the first day of his trial in New York.

Assistant U.S. Attorney Jonathan Streeter said that Raj Rajaratnam blatantly paid hundreds of thousands of dollars, used secret off-shore accounts and concocted elaborate cover-ups to obtain illegal, non-public information and make millions on stocks.

“Greed and corruption. That’s what this case is about. It’s about that information giving the defendant an illegal advantage over investors in the stock market,” the New York Daily News quoted Streeter, as saying to jurors.

“He exploited a corrupt network of people to get access to secret, sensitive information. This is all information that ordinary investors didn’t have and couldn’t get,” he added.

Streeter further said that evidence includes taped phone conversations, the testimony of insiders who pleaded guilty, phone records and stock-purchase reports.

“Rajaratnam paid people from other companies to get tomorrow’s business news today. But there was one critical thing he didn’t know. He didn’t know that the FBI was listening,” Streeter said.

The 53-year-old is charged with 14 counts of conspiracy and securities fraud.

The government alleges that he made 45 million dollars from insider trading tips and conspired with others, including employees at Galleon, board presidents and consultants.

A jury of seven women and five men has been seated for the trial, which is expected to last more than two months. Rajaratnam could face over 100 years in jail if convicted. (ANI)