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Galleon Still Cashing In

Raj Rajaratnam may be facing jail time, but his investments are still paying off. Yesterday, ReachLocal, an online advertising company in which Raj’s Galleon Group owned about 7 percent, priced an initial public offering.

Galleon didn’t sell any shares in the offering, but the firm appears to have doubled its investment in a little over two years. Not bad for Raj. Galleon owns about 1.6 million shares, which it bought in a VC deal for around $9.20 a share in Sept. 2007.

ReachLocal priced its shares at $19 yesterday. It plans to begin trading on Nasdaq under the symbol RLOC. Also big winners were accounts associated with former Galleon managing partners Krish Panu and Kris Chellam, who both bought into ReachLocal at $9 a share in May 2009.

Panu has been accused by the government of tipping off Raj about merger negotiations between PeopleSupport, an outsourcing company, and Essar Group of India. Panu, at the time, served as a director on the PeopleSupport board of directors. He has not been charged criminally.


Justice Department Probes Leaks in Galleon Case

Looks like Raj Rajaratnam’s complaints about leaks coming out the Justice Department on the Galleon case have not fallen on deaf ears. Raj’s attorney’s announced today that they have been informed by The DOJ’s Office of Professional Responsibility that it has opened an investigation into alleged leaks by the FBI and the U.S. Attorney’s office to the Wall Street Journal and other news outlets.

Letter Reveals More Names in Galleon Case

Roomy Khan, one of the key cooperating witnesses in the Galleon insider trading case, used her extensive rolodex of insiders to gain access to secret market-moving information. Recently released court documents show that list of contacts could be longer than we thought.

Former McKinsey Consultant to Pay $2.8 Million in Galleon Case

Anil Kumar, the former McKinsey & Co. consultant who pleaded guilty to passing confidential information to Raj Rajaratnam, has been ordered to pay about $2.8 million in disgorgement and penalties to settle related SEC charges against him.

Former Galleon Trader Franz Tudor Key to Galleon Case

Prosecutors are counting on recordings made by former Galleon trader Franz Tudor as key evidence against Zvi Goffer and other defendants in the wide-ranging insider trading case, new documents reveal.