Unlike his brother Raj, currently serving an 11 year sentence for securities fraud, Rengan Rajaratnam will not spend time in the big house.
Rengan Rajaratnam, the brother of Galleon Group LLC co-founder Raj Rajaratnam, became the first of at least 88 people charged in a federal crackdown on insider trading to escape conviction. A federal jury in New York after little more than three hours of deliberations today found Rengan Rajaratnam not guilty of scheming with his older brother to commit insider trading in 2008. It’s the only trial loss in the crackdown on insider trading at hedge funds for Manhattan U.S. Attorney Preet Bharara and the Federal Bureau of Investigation. Of those charged since 2009, at least 81 had been convicted at trials or had pleaded guilty. Rengan Rajaratnam was one of at least 10 people whose case went to trial. He was living in Brazil when he learned of his indictment. “Go back to Brazil for the finals,” U.S. District Judge Naomi Reice Buchwald told him following the verdict and after she canceled his bail, in reference to the pending World Cup soccer match.