When Raj Rajaratnam was charged and ultimately convicted of insider trading, most people realized he would not be the only one hurt. His actions affected many more people than himself, including his family and the entire Galleon staff, who was rendered unemployed when the hedge fund was forced to shut down. Those employees now looking for a new source of income and healthcare provider don’t just include traders, analysts and admins, but the prostitutes Raj kept on payroll as well.

In March, 2007, the S.E.C. briefed the F.B.I. and the United States Attorney’s Office for the Southern District of New York, which opened a criminal case. That same month, an anonymous letter arrived at the S.E.C.’s offices, postmarked Queens, March 13, 2007. “…Prostitution is rampant for executives visiting Galleon,” the letter read. You will find that the Super Bowl parties for the executives, paid for by Galleon Group, include prostitutes and other forms of illegal entertainment. In return, the executives provide Galleon the unfair edge that the fund leverages so well.”

Who wants to be mensches? If you don’t have the cash to start them at $250,000/year, at least consider a bake sale.

[New Yorker via BI]

Comments (10)

  1. Posted by Shawn | June 23, 2011 at 7:32 PM

    Will they accept payment in Euros?

    –HR@ Munich Re

  2. Posted by Anonymous | June 23, 2011 at 7:37 PM

    Do they take checks?

    -Lenny Dykstra

  3. Posted by Wilbur | June 23, 2011 at 7:40 PM

    Shares of Ligthsquared?

  4. Posted by STAR | June 23, 2011 at 7:45 PM

    meeep….blurp……wuurp…durrp…….STAR……hurp……..

  5. Posted by early hominid | June 23, 2011 at 7:46 PM

    You should keep prostitutes on your staff not your payroll. 

  6. Posted by Guest | June 23, 2011 at 7:48 PM

    “I’m sorry, but if you want me to make you…well you know, I’ll need that 3Q earnings number.”

    –Galleon hooker

  7. Posted by Non-Entity Hedge Fund Manager | June 23, 2011 at 7:51 PM

    Pics or it didn’t happen

  8. Posted by Raj's Hoes | June 23, 2011 at 8:22 PM

    We’ll take whatever you have to offer, just tell us where to pick up our bracelets.

  9. Posted by GMAT Level II Candidate | June 23, 2011 at 8:49 PM

    Exactly. How would you go about explaining compensation to the IRS EOY?

    -GMAT, Level II Candidate

  10. Posted by MTAnalyst | June 24, 2011 at 4:48 PM

    We’re not just “hookers.” Do you know the schools we’ve been to?

    -Hermon Raju

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