Galleon Group founder Raj Rajaratnam Civil Trial Could be Postponed

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According to various sources, Manhattan federal court Judge Jed Rakoff, said on Friday that he would consider postponing the case against Rajaratnam and New Castle Partners founder Danielle Chiesi until after the related criminal trial, which begins in October 25th, 2010.

Rakoff had previously described the August 2nd, 2010 start date of his trial as “firm and fixed.”   However, he did not did not indicate at a court hearing when he would rule to set the new date for civil trial.   U.S. prosecutors, lawyers for the SEC and defendants are all in favor of the criminal trial going ahead first.

Usually, when there are parallel cases brought by criminal prosecutors and the SEC, the criminal case takes precedence.   However, Rakoff quickly set a civil trial date and denied initial requests to wait for resolution of the criminal matter.

U.S. prosecutors have described the case of Galleon Group founder Raj Rajaratnam as the biggest-ever U.S. hedge fund insider-trading scandal.   More than 20 traders, lawyers, executives and firms have been charged in a probe that stretched from Wall Street to Silicon Valley.

Rajaratnam is accused of making as much as $49 million in illegal profits between 2003 and 2009 on tips he received from business associates and friends on forthcoming mergers and acquisitions.

The cases are USA v Raj Rajaratnam et al, U.S. District Court for the Southern District of New York, No. 09-01184 and SEC v Galleon Management et al, No. 09-08811

Anna Timone (195 Posts)


Comments

  1. Thnks. Anna Timone !..

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