(Being Investigated For/Accused Of) Insider Trading: A Rajaratnam Family Affair!

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The Journalreports that Raj Rajaratnam was deposed by federal authorities in 2007 in an insider-trading investigation involving "an unrelated hedge fund." And by unrelated he means it was his brother Rengan's fund, Sedna Capital, which was described that year by Total Alternatives as a "Galleon spin-off." So this is why Raj argued yesterday that all that evidence the feds might've gathered re: insider trading at Galleon via wiretaps shouldn't be held against him because he was already co-operating/handing over docs in the other case. Little bro's fund closed in June 2007 supposedly due to poor performance though perhaps the matter of being investigated for fraud played a tiny part as well (the last reported returns for Sedna, in January '07, had their domestic fund down -8.2%).


According to the Journal Reng-Raj went to work for Raj-Raj at Galleon after Sedna shut down (and before starting his own fund, worked for the King of Stamford for about 6 months in 2003). As of about a month ago, Rengan's Linkedin profile claimed his was still working at Sedna. Perhaps he just didn't have the time to make an update (or take down the fund's website). No one's accusing anyone of anything here. Also! Rengs helped finance a movie called "Today's Special," and has his own IMBD page, thank you very much.

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