Insider Trading

Hedge-Fund Founder Indicted

Galleon hedge-fund founder and billionaire Raj Rajaratnam and co-defendant Danielle Chiesi were indicted for conspiracy and fraud Tuesday by a federal grand jury in what prosecutors call "the largest hedge-fund insider-trading case in history." The 17-count indictment says that an alleged insider-trading ring operated "from at least in or about 2003 up to and including in or about March 2009,” during which time, prosecutors say, the defendants made millions of dollars in illegal profits. With the help of wiretaps, 14 more people were arrested in November. Rajaratnam is free on $100 million bail and must soon make a formal plea.