Rajaratnam Case Goes to Jury
The jury has been hearing the case since March 8 and now has to decide
By: Maureen O'Gara
Apr. 26, 2011 08:00 AM
A New York federal jury got the Raj Rajaratnam insider trading case Monday around noon.
The alleged ringleader of a virtual syndicate using inside information to make illegal trades in a litany of high-tech stocks, the billionaire founder of the Galleon hedge fund is the only one of 26 people charged in the case, including the former head of IBM's server operation Robert Moffat, to plead not guilty to charges of conspiracy and securities fraud.
The jury has been hearing the case since March 8 and now has to choose between the damning evidence it heard on the government's secret wiretaps and Rajaratnam's thin defense that he was being fed public information and that the prosecution's key witnesses all lied to save their own skins.
Moffat, for one, has been in prison since November, with expectations of being released next month. Attorney Jason Goldfarb pleaded guilty Monday morning to charges he leaked information on 3Com acquisition in 2007 and 2008. He is expected to serve 37-46 months in jail.
The prosecution figures Rajaratnam, who did not take the stand, made $63.8 million on the tips he got. He is facing 20 years in prison on each of nine counts of securities fraud - and five years on each of the five counts of conspiracy - if convicted.
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