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

(hidden for your protection)
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119 Responses to “Galleon Group Founder Charged With Securities Fraud”

  1. guest says:

    @1 asshole. have nothing not racist to add?

  2. guest says:

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

  3. guest says:

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

  4. MSU '12 says:

    That is so annoying.

  5. guest says:

    @5 nice

  6. guest says:

    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. guest says:

    anyone have the complaint?

  8. guest says:

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

  9. guest says:

    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. guest says:

    @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. guest says:

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

  12. guest says:

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

  13. guest says:

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

  14. guest says:

    @15 seconded!

  15. guest says:

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

  16. Investorcluzo says:

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

  17. guest says:

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

  18. guest says:

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

  19. guest says:

    Nahgona…Nahgona…Nahgona work here anymore

  20. merkin capital partners says:


  21. "Dong" Bell says:

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

  22. guest says:

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

  23. Han Solo says:

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

  24. guest says:

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

  25. guest says:

    Reading this post put me in the mood for Indian food

  26. guest says:

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

  27. guest says:

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

  28. Disgusted Indian chick says:

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

  29. guest says:

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

  30. guest says:

    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.

  31. guest says:

    @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

  32. guest says:

    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.

  33. guest says:

    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.

  34. guest says:

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

  35. Investorcluzo says:

    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.

  36. guest says:

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

  37. guest says:

    He looks Indian.

  38. guest says:

    Mr. Potato Head is a fund manager?

  39. guest says:

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

  40. guest says:

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

  41. guest says:

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

  42. guest says:

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

  43. guest says:

    I’m now short the spelling bee

  44. guest says:

    Whole street saying Galleon is finished.

  45. guest says:

    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.

  46. guest says:

    The big gulp machine, it is broken!

  47. guest says:

    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.

  48. guest says:

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

  49. guest says:

    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.

  50. guest says:

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

  51. guest says:

    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.

  52. guest says:

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

  53. guest says:

    “vikram and raj, stop being jerks”

  54. guest says:

    @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.

  55. guest says:

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

  56. guest says:

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

  57. guest says:

    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.

  58. guest says:

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

  59. guest says:

    He is Sri Lankan.

  60. guest says:

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

  61. guest says:

    There is no such place as Sri Lankan.
    Michael Scott

  62. guest says:

    You can bet his dick is misshapen.

  63. guest says:

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

  64. guest says:

    @64: Like an egg? Or a cucumber?

  65. KingOfAllRajs says:


  66. buy side says:

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

  67. guest says:

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

  68. guest says:

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

  69. Ricky Ricardo says:

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

  70. guest says:

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

  71. guest says:

    Galleon out

  72. guest says:

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

  73. guest says:

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

  74. guest says:

    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

  75. guest says:

    @68 that was fucking awesome

  76. guest says:

    Indians should have no part in manging money in America.

  77. guest says:

    Anyone thinks he might get off this hook?

  78. guest says:

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

  79. derden says:

    @78 he is sri lankan, you ignorant dolt.

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