Earlier today, Raj Rajaratnam's 7-man legal team rested its defense of the Galleon founder, accused of insider trading. This unfortunately means that the man of the hour will not take the stand, as some had hoped, but there may be a few more surprises in store.
According to assistant U.S. Attorney Jonathan Streeter, the prosecution will be playing two more wiretap recordings of Rajaratnam. So far we've heard conversations in which Raj can be heard complimenting Danielle Chiesi on how she “played” a tech exec into giving her material non-public information and one of him telling a friend he knew to buy shares of a company because “one of our guys is on the board,” in addition to being told told that his brother felt the need to destroy his “private notebooks" and that he paid former McKinsey exec Anil Kumar $1 million for his tip about AMD’s acquisition of ATI. Additionally, last week it was disclosed (by the prosecution), that the defense's "star" witness, Richard Schutte, got a $15 million investment in his hedge fund by the Rajaratnam family two weeks before he took the stand to tell the jury Raj was "amazingly well-educated on the issues" and never asked for material, non-public information in Schutte's presence. Despite all that looking kind of bad for Raj-Raj, a business school professor said on Friday that, in his opinion, it's *possible* the accused manager made the trades in question without inside info. So this thing could really go either way.
Rajaratnam Defense Rests [Bloomberg]