Rengan Rajaratnam Couldn't Match Big Brother's (Alleged) Insider Trading Skills

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Typically in families where their are children of the same sex, one of two dynamics exists. In scenario one, big brother (or sister) is the star, excelling at everything he or she does, making it impossible for the younger sibling to live up to the highly set bar. In scenario two, the younger sibling outpaces the older, making the first born feel like a fuck up for not having the same successes as junior. In the Rajaratnam family, the former was the case. Whereas Raj was married with a bunch of kids, little bro Rengan struggled to meet women, noting that it felt like "they've all gone away or someone snatched them up." Whereas Raj ran a multi-billion dollar hedge fund, Rengan had a dinky little shop with assets under management barely hitting 200 million, seeded by his bro. And whereas Raj (allegedly) had some of the best insider trading skills on the Street, Rengan embarrassed himself trying to beat the press on hot tips.

The younger brother of Galleon Group founder Raj Rajaratnam called him in a panic in March 2008 after The Wall Street Journal published an article about a secret wireless venture the hedge-fund manager allegedly knew about from a confidential source at a company involved in the deal. In the call, which was caught on a federal wiretap and played Thursday at Raj Rajaratnam's insider-trading trial in Manhattan, Rengan Rajaratnam appears to be frustrated that his ability to make trades ahead of the deal would be hampered now that it was public.

"Oh dude, we're f—" Rengan Rajaratnam said, according to the tape played for jurors. "It just hit The Wall Street Journal."

"What's that?" Raj Rajaratnam asked.

"The Clearwire stuff," his brother said.

Not saying living for so many years in Raj's shadow finally caused Rengan to snap and rat him out, but not not saying it, either.

Galleon Jurors Hear Panicked Call From Rajaratnam Brother [WSJ]

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