Wednesday, May 11, 2011

Galleon Trial: Rajaratnam Found Guilty

NEW YORK, NY - MARCH 08:  Billionaire Galleon ...After more than a week deliberating, an excused juror, a re-start of deliberations with an alternate juror, and another week and a half of deliberations, there is a verdict in the Galleon insider trading trial.

Raj Rajaratnam is guilty on all 14 counts of fraud and conspiracy.

I have watched this story unfold
since October 2009, when Rajaratnam and four others, including senior executives from IBM, Intel, and McKinsey & Company were arrested.

This verdict proves that the law applies to everyone, even the rich and powerful. It’s also a landmark case from an insider trading perspective; it was the first of its kind to utilize wiretapped conversations as evidence.

While attorneys for Rajaratnam built their defense by questioning whether the information he traded on was public, I am happy to see that corporate secrets shall (legally) remain protected.

Rajaratnam is scheduled for sentencing on July 29th. He could serve up to 25 years in prison. Danielle Chiesi, the femme fatale in this drama, has pleaded guilty and faces sentencing later this month.

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