Skip to main content

Raj Rajaratnam Juror Offers Insider Tips For Any Would-Be Insider Traders

  • Author:
  • Updated:

So you've started a hedge fund and have decided the best way to maximize returns for investors is by trading on material non-public information. With the government's crackdown on insider trading, odds are you will ultimately get caught and, if you've suffered blunt trauma to the head, will decide to take your chances at a trial by jury rather than settle. If you'd like some level of assurance you'll have better odds than Raj Rajaratnam, who was deemed guilty by Day 2 of deliberations (despite the jury taking 12 days to spit it out), consider these tips from one of the women, Leila Gonzalez Gorman, who helped sent him away.

Tip #1: If you're just getting started and have yet to name your firm, go with something that says "innocent" and "not guilty" and "does this look like a face that would insider trade? come on!"

“Galleon buccaneers, those are pirates, and he named his company after pirates,” Gorman said. “And if you look at the history of pirates, they’re thieves.”

Tip #2: Consider using a voice scrambler when discussing insider trading over a tapped phone line.

“The wiretaps helped but they were not the most compelling” evidence, Gorman said. “They were very, very helpful because you get to listen to the tone. It pieced everything together. It was a confirmation that this is definitely insider trading.”

Tip #3: Figure out jurors' weaknesses and when running into them, try and act sympathetic. For example, if you know one juror has kidney problems, share that you've been a longtime sufferer of chronic uromysitisis and hate when people tell you where and when you can and cannot relieve yourself.

Although there were several tense moments — Ms. Gorman recalls telling one juror, “You can’t tell me not to go to the bathroom, go to hell” — she said they rarely disagreed on the facts of the case.

Tip #4: Hire lawyers a jury would want to bang.

“We called them all gorgeous,” Ms. Gorman said [of the prosecution]. “They were all hot.” She nicknamed Mr. Brodsky Napoleon, a tribute to his fiery attitude and how he dramatically brushed back his dark hair with his hand. She said the female jurors often joked about calling “dibs” on the more attractive members of the courtroom.

Stack Of Evidence Sealed Galleon Verdict, Says Juror [Dealbook via BI]
Raj Rajaratnam Was Deemed Guilty by Day Two of Deliberations, Juror Says [Bloomberg]