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Raj Rajaratnam's "Star" Witness May Have Been Given A Reason To Make The Galleon Founder Look Good

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Fifteen million of them.

The family of Galleon Group LLC co- founder Raj Rajaratnam invested $15 million in a fund run by Richard Schutte, the former U.S. president of the hedge fund, weeks before Schutte testified on his behalf, Schutte said.

So far Schutte has told the jury that his former boss was "amazingly educated on the issues at hand," never asked anyone for inside information in Schutte's presence, and charged people $25 for showing up late to meetings, implying that with a lucrative side business penalizing the tardy, Raj had no reason to use illegal means to score some extra cash. None of which he was necessarily paid off to say- he might actually believe it, depending on how inflexible Raj was with the late rule (ass not in the chair within 5 seconds of call time means pay up, etc).

Rajaratnam Family Invested in Schutte’s Fund Weeks Before Trial [Bloomberg]