• 16 Oct 2009 at 10:21 AM

Galleon Group Founder Charged With Securities Fraud

Screen shot 2009-10-16 at 10.38.06 AM.pngDavid Faber reports Raj Rajaratnam has been charged in a $20 million insider trading case, which is probably upsetting regardless but stings that much more given that the Journal boldly claimed in February that Galleon would be among a group of A-team hedge funds not going under in the foreseeable future. (This news will also rain on the parade Raj-Raj was likely throwing for himself to celebrate being named the 236th richest person in America.) The FBI had apparently been tapping Raj’s cell phone, so hopefully we’ll get some good convos out of that.
Per the Journal, others charged include:

Rajiv Goel, director in strategic investments at Intel Corp.’s investment arm; Anil Kumar, a director at global management-consulting firm McKinsey & Co.; Danielle Chiesi and Mark Kurland of Newcastle Partners LP, the one-time equity hedge-fund group at Bear Stearns Asset Management Inc.; and Robert Moffat, a senior vice president at International Business Machines Corp.

Here’s the complaint, via Dealbook:


Insider Trading Charges Against Galleon Group Founder

119 comments (hidden to protect delicate sensibilities)
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Comments (119)

  1. Posted by guest | October 16, 2009 at 10:27 AM

    @1 asshole. have nothing not racist to add?

  2. Posted by guest | October 16, 2009 at 10:29 AM

    i dont remember the indian guy in the A-Team.
    -GRB

  3. Posted by guest | October 16, 2009 at 10:29 AM

    Asshole @2 He’s a crook. What’s your point?

  4. Posted by MSU '12 | October 16, 2009 at 10:29 AM

    That is so annoying.

  5. Posted by guest | October 16, 2009 at 10:30 AM

    @5 nice

  6. Posted by guest | October 16, 2009 at 10:32 AM

    How could such a handsome man make such a bad decision?? Hes disturbing looking, no wonder why hes so smart, probably read the entire encyclopedia brittanica set before the age of 8

  7. Posted by guest | October 16, 2009 at 10:34 AM

    anyone have the complaint?

  8. Posted by guest | October 16, 2009 at 10:35 AM

    @7 why do you care if he’s good looking or not? are deciding whether or not you want to fuck him?

  9. Posted by guest | October 16, 2009 at 10:37 AM

    Looks like he was on Continent. They got him before he had the chance to run to some rat hole in Mumbai.
    I prescribe some time in Federal Pound Me In The Ass Prison. FPMITAP.

  10. Posted by guest | October 16, 2009 at 10:39 AM

    @7 Im saying hes a raging nerd you f’in toolbox. Now go mow my lawn since you are probably on the souplines you knob

  11. Posted by guest | October 16, 2009 at 10:41 AM
  12. Posted by guest | October 16, 2009 at 10:41 AM

    It’s 10:40 and no Greg. Any chance Bess finally snuffed him? We can only hope. That Douche.
    Greg’s Mom

  13. Posted by guest | October 16, 2009 at 10:43 AM

    @11 really? because your first two lines were comments on his looks. it’s okay, man, just be honest with yourself.

  14. Posted by guest | October 16, 2009 at 10:44 AM

    what’s with all the pictures of dudes this morning? any chance we can get a dupre pic?

  15. Posted by guest | October 16, 2009 at 10:44 AM

    @15 seconded!

  16. Posted by guest | October 16, 2009 at 10:45 AM

    Not sure what the pic of Indra Nooyi has to do with the post?

  17. Posted by Investorcluzo | October 16, 2009 at 10:46 AM

    faber scooped no sleeves! what gives? too many cannolis at elaine’s last night…chazz, you’re slippin’

  18. Posted by guest | October 16, 2009 at 10:49 AM

    Who knew that Jolly from Candyland could ever become involved in insider trading?

  19. Posted by guest | October 16, 2009 at 10:49 AM

    Seriously, i would take a Whitney pic at this point.

  20. Posted by guest | October 16, 2009 at 10:50 AM

    Nahgona…Nahgona…Nahgona work here anymore

  21. Posted by merkin capital partners | October 16, 2009 at 10:51 AM

    VWAT?

  22. Posted by "Dong" Bell | October 16, 2009 at 10:52 AM

    This isn’t that scummy little schmuck that was on The Apprentice is it?

  23. Posted by guest | October 16, 2009 at 10:52 AM

    seriously, this is what happens when we let native americans run things

  24. Posted by Han Solo | October 16, 2009 at 10:54 AM

    I do not condone the crimes that this Ewok is accused of committing, but remember he was instrumental in defeating The Empire.

  25. Posted by guest | October 16, 2009 at 10:54 AM

    @23 you dumb shit, raj is dot, not feather.

  26. Posted by guest | October 16, 2009 at 10:56 AM

    Reading this post put me in the mood for Indian food
    –sc

  27. Posted by guest | October 16, 2009 at 10:56 AM

    That’s the same grimace I get after I eat at Curry in a Hurry

  28. Posted by guest | October 16, 2009 at 10:58 AM

    @28 that’s the grimace I have when it’s on the way out the following morning.

  29. Posted by Disgusted Indian chick | October 16, 2009 at 10:58 AM

    God, he’s a disgrace even by our admittedly low standards.

  30. Posted by guest | October 16, 2009 at 11:00 AM

    I recommended my fund invest in them. We invested $200MM. FML.
    -FOF Analyst that will need a job soon

  31. Posted by guest | October 16, 2009 at 11:08 AM

    Galleon has always had a reputation as a shady fund. I wonder which of the thousand times they ran over the sell-side right before news drew the attention of the Feds.

  32. Posted by guest | October 16, 2009 at 11:08 AM

    @31 chill out, his crime involved making money, not covering up losing it. Your ass is covered (except for the part about how your entire industry is a joke), but yes your life is still f’d

  33. Posted by guest | October 16, 2009 at 11:09 AM

    He looks like Mungo from Heathcliff. @23, you almost made coffee shoot out of my nose. Dominos are going to fall, hes going to roll over on everybody.

  34. Posted by guest | October 16, 2009 at 11:10 AM

    The only surprise is that it took so long to catch him. He got his start on the Needham desk front-running his customer orders (including mine) and never lost his taste for the cheater’s edge. I look forward to his long stretch as Bernie’s bunkie at Club Fed. Galleon’s success is a monument to the ignorance of the FoF industry.

  35. Posted by guest | October 16, 2009 at 11:19 AM

    Chill out? The fund is liquefying as we speak. Galleon is done, I just called them and they said so
    -#31

  36. Posted by Investorcluzo | October 16, 2009 at 11:20 AM

    agreed, this isn’t madoff or stanford (but that doesn’t make him any better, or does it?). he was making money…where’s 1-2? he has a strong opinion on insider trading. would be interesting to hear his take on this one.

  37. Posted by guest | October 16, 2009 at 11:21 AM

    @35 It’s a monument to the ignorance of the SEC

  38. Posted by guest | October 16, 2009 at 11:22 AM

    He looks Indian.

  39. Posted by guest | October 16, 2009 at 11:23 AM

    Mr. Potato Head is a fund manager?

  40. Posted by guest | October 16, 2009 at 11:23 AM

    This guy sells one hell of a chicken/lamb over rice over at 51st and Park.

  41. Posted by guest | October 16, 2009 at 11:23 AM

    @36 “Chill out? The fund is liquefying as we speak. Galleon is done, I just called them and they said so”
    email bess!

  42. Posted by guest | October 16, 2009 at 11:26 AM

    @19 I literally despise people that use the phrase ‘ftw’ but that was amazing

  43. Posted by guest | October 16, 2009 at 11:26 AM

    @41 Weak. If you want to be racist, at least be funny.

  44. Posted by guest | October 16, 2009 at 11:32 AM

    I’m now short the spelling bee

  45. Posted by guest | October 16, 2009 at 11:32 AM

    Whole street saying Galleon is finished.

  46. Posted by guest | October 16, 2009 at 11:36 AM

    What do you want me to email Bess? It’s pretty obvious that if the Principal of a HF gets arrested, redemptions will be massive and the fund will close.
    -#31/36

  47. Posted by guest | October 16, 2009 at 11:39 AM

    The big gulp machine, it is broken!

  48. Posted by guest | October 16, 2009 at 11:41 AM

    Next question is what happens to all the ex-Galleon traders. They’ll all claim that this whole insider trading thingie was just confined to a few guys at the top. Probably other idiot FoF’s will buy it…and the ride continues.

  49. Posted by guest | October 16, 2009 at 11:46 AM

    How much do FOF analysts make? And can you become an FOF analyst right out of undergrad?

  50. Posted by guest | October 16, 2009 at 11:52 AM

    Galleon is set up like Diamondback/SAC, they have separate portfolio that go up to about $100MM per sector, so there are a shit ton of Jr. Portfolio managers within Galleon, a top of Galleon itself having 10+ funds and then the major portfolio managers, which are Raj and Jeff Bernstein, (who helped star the fund, left the fund and then came back a few years ago, I bet he’s pissed.) So this basically creates a shit-ton of Galleon employees flooding the labor market.

  51. Posted by guest | October 16, 2009 at 11:57 AM

    @50, not much. Being in the FOF industry is similar to being back-office anywhere else.

  52. Posted by guest | October 16, 2009 at 12:12 PM

    From the Forbes profile:
    “… says best ideas come from frequent visits with companies, conversations with execs who invest in his fund…” Funny in hindsight.
    Let’s face it – this kind of thing was rampant during the most recent deal boom. The fact that the SEC has only brought a couple of high profile cases is a testament to its sad state.

  53. Posted by guest | October 16, 2009 at 12:13 PM

    Thats why they are always whispering in the corner at conferences…

  54. Posted by guest | October 16, 2009 at 12:13 PM

    “vikram and raj, stop being jerks”
    -JD

  55. Posted by guest | October 16, 2009 at 12:14 PM

    @53 What makes you think it is not “rampant” now?
    29 year old Goldman rejects going to work for the SEC = sign of the times.

  56. Posted by guest | October 16, 2009 at 12:24 PM

    As if Moody’s weren’t already corrupt enough, they were the ones passing the inside info in the case of Hilton. Scumbags.

  57. Posted by guest | October 16, 2009 at 12:28 PM

    Really? Back office? There is no way working at a FOF is as bad as back office, is it?
    -50

  58. Posted by guest | October 16, 2009 at 12:30 PM

    @56,
    Fewer (or no) deals = less insider trading. I’m sure the next upswing in M&A will give the SEC ample opportunities to display its enforcement prowess.

  59. Posted by guest | October 16, 2009 at 12:31 PM

    @58 FoF deal with the crap back-office spews out except it’s a month, or more, afterwards.

  60. Posted by guest | October 16, 2009 at 12:34 PM

    -@30
    He is Sri Lankan.

  61. Posted by guest | October 16, 2009 at 12:36 PM

    Is there any connection between fatness and corruption, in east asia or elsewhere?

  62. Posted by guest | October 16, 2009 at 12:39 PM

    There is no such place as Sri Lankan.
    Michael Scott

  63. Posted by guest | October 16, 2009 at 12:40 PM

    You can bet his dick is misshapen.

  64. Posted by guest | October 16, 2009 at 12:46 PM

    Wait, let me get this straight, Galleon’s investment style was cribbed from Pequot’s?

  65. Posted by guest | October 16, 2009 at 12:50 PM

    @64: Like an egg? Or a cucumber?

  66. Posted by KingOfAllRajs | October 16, 2009 at 12:50 PM

    I LOVE IT WHEN THEY CALL ME BIG POPPA

  67. Posted by buy side | October 16, 2009 at 12:52 PM

    Insider information, huh? i though this was called a “channel check”?

  68. Posted by guest | October 16, 2009 at 1:11 PM

    Did he at least have a hot wife? Was he a playa? $1.3B ain’t nutin’ to scoff at.

  69. Posted by guest | October 16, 2009 at 1:11 PM

    is it me or does this black guy have a really funny sounding name? almost like he is indian or something…

  70. Posted by Ricky Ricardo | October 16, 2009 at 1:28 PM

    Who in their right mind would have trusted this scummy fucking fat Cuban?

  71. Posted by guest | October 16, 2009 at 1:33 PM

    I object to these racist comments on the grounds that they just aren’t funny.

  72. Posted by guest | October 16, 2009 at 1:35 PM

    Galleon out

  73. Posted by guest | October 16, 2009 at 2:59 PM

    get your facts right… He is srilankan… not indian…

  74. Posted by guest | October 16, 2009 at 3:28 PM

    Gary…, (sound of soda bottles clinging together) Gary…, come out to pl-a-a-y.
    -The FBI

  75. Posted by guest | October 16, 2009 at 3:30 PM

    Anyone find it amazing that some schlock from Needham can start a $7 Billion Fund?
    Ontly Gruntal was worse than Needham.
    Keep in mind a pure wasp or brit blond is probably his wife…and wolfs down his chutney ferret ever night

  76. Posted by guest | October 16, 2009 at 8:41 PM

    @68 that was fucking awesome

  77. Posted by guest | October 17, 2009 at 4:19 AM

    Indians should have no part in manging money in America.

  78. Posted by guest | October 17, 2009 at 11:08 AM

    Anyone thinks he might get off this hook?

  79. Posted by guest | October 19, 2009 at 9:24 AM

    @ 78 – you are right, Indians can’t compete with the Bernie’s and the Sri-Lankans.

  80. Posted by derden | October 20, 2009 at 8:06 PM

    @78 he is sri lankan, you ignorant dolt.

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