Sri Lankan Tamil hedge fund manager Raj Rajaratnam has been found guilty on all 14 counts of securities fraud and conspiracy by a 12-member jury in New York City.
Great day, folks. The Augean Stables of Wall Street are certainly ripe for a thorough cleansing.
Raj Rajaratnam is the most well known name to be convicted in the government’s current crackdown on insider trading on Wall Street.
Raj Rajaratnam, founder and head of the Galleon Fund, faces up to 19 and a half years in prison.
Of course, Rajaratnam will appeal his conviction.
Arrayed against Raj Rajaratnam was the prosecution team led by Manhattan U.S. Attorney Preet Bharara and his associates.
To make their case, the prosecution made extensive use of telephone taps and played the recorded calls to the jury.
When announcing the charges against Rajaratnam et al in October 2009, Bharara declared:
This case should be a wake up call for Wall Street. It should be a wake up call for every hedge fund manager and every Wall Street trader and every corporate executive who is even thinking about engaging in insider trading. As the defendants in this case have now learned the hard way, they may have been privy to a lot of confidential corporate information, but there was one secret they did not know: we were listening. Today, tomorrow, next week, the week after, privileged Wall Street insiders who are considering breaking the law will have to ask themselves one important question: Is law enforcement listening?