A Guide to the Galleon Case

On Mar 8, 2011, one of the biggest insider trading cases in US history went to trial in a federal district courthouse in Lower Manhattan. Sri Lankan billionaire Raj Rajaratnam faces 14 separate counts of securities fraud and conspiracy. Rajaratnam, co-founder of the Galleon Group hedge fund, is alleged to have masterminded an insider trading ring that netted his firm $45 million. The prosecution's case relies on FBI wiretaps and confidential informants. Rajaratnam, who has pleaded not guilty, has poured more than $20 million into his defense, according to The New York Times. On Mar 1, 2010, the probe reached into the uppermost ranks of the business world as the Securities and Exchange Commission accused former McKinsey Managing Director Rajat Gupta of illegally sharing information with Rajaratnam.