The Roomy And Raj Show Returns (For One Night Only)

Roomy and Raj, together again...sorta...also not.
Author:
Publish date:

If you’ve been aching for a Roomy Khan fix since her last post over at BI in November—in which she offered her tips on how to weather the holidays in the hoosegow—you’re in luck. At least, you would have been in luck if you were a student at Georgia Southern University last week and popped in to hear her chat. To a presumably rapt crowd of members of the Finance Association (Georgia Southern chapter) and Fraud Examiners Association club (What? Did you not have one of those at your college?), Roomy told of her doomed friendship with Raj Rajaratnam, her year in prison and what she learned about herself, which boils mostly down to: If you put Roomy Khan and material non-public information in a room together, she’s gonna trade on it.

rajraj

When Khan returned to work with Rajaratnam in 2005, she knew that she was getting herself in a bad situation, and she said it was like a former drug addict going back to his or her old environment after coming out of rehab.'

“If you hear about the drug cases, you know people go for rehab, and then after rehab, if you go back to the same set of people, guess what? Before you know it, you’re back at it. So, I’m back at the same thing. I’m working with the same people,” Khan said….

Today, Khan hopes that by sharing her story, people will learn about the severity of the choices they make in the industry because she regrets her own.

“It actually took a lot for her to come in. Like backstage, she was still upset about the whole situation emotionally,” Ashley Nickey, the president of the Fraud Examiners Association and a senior criminal justice major, said.

Also still upset about the whole situation emotionally, albeit in a not-having-learned-anything sort of way, is old Raj Raj himself. Like some old friends and cellmates, Rajaratnam heard through the prison grapevine that the courts are eager to let insider-traders go free. And even though he’s been having the time of his life in the clink, Raj was willing to give it all up if the courts would give him $50 million back. Seems fair, right? Only problem is, as certain old friends and cellmates have learned, and the Supreme Court recently affirmed, insider-trading is still technically illegal. And so Raj will have to keep the prison party going for another four years and change.

U.S. District Judge Loretta Preska in Manhattan said Rajaratnam failed to show his actual innocence on five of the 14 counts on which he was convicted, or that two other counts should be vacated because the main government witness committed perjury.

Preska also rejected Rajaratnam's argument that his trial counsel was ineffective, and denied Rajaratnam's bid to reduce the $53.8 million he agreed to forfeit to about $4.3 million.

A former FBI informant reflects on her involvement with the Insider Trading Industry [The George-Anne]
Galleon’s Rajaratnam loses bid to cut insider trading sentence [Reuters]

Related

Raj Rajaratnam Launches Web Site, Says Wiretaps Are Illegal

In addition to putting up a fancy new website, Raj Rajaratnam and his lawyers made a motion today to suppress the government's wiretap evidence. In a 75-page brief, lawyers for Raj laid out their argument that FBI Special Agent B.J. Kang and the U.S. Attorney’s office in the Southern District of Manhattan intentionally misled the court when they sought authorization secretly listen in on Raj's cell phone.

Letter Reveals More Names in Galleon Case

Roomy Khan, one of the key cooperating witnesses in the Galleon insider trading case, used her extensive rolodex of insiders to gain access to secret market-moving information. Recently released court documents show that list of contacts could be longer than we thought.