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Indian origin billionaire Raj Rajaratnam arrested for Wall Street fraud |
Indian origin billionaire investor Raj Rajaratnam,
founder of Galleon Group, was arrested over an alleged 20 million dollars insider
trading scheme that US prosecutors called the biggest ever involving hedge funds.
The Federal Bureau of Investigation arrested him on Friday in New York along with
five others tied to the case. Galleon Group said in a statement that it is "shocked
by the arrest" of Raj Rajaratnam and had no knowledge of the investigation before
today. Federal authorities have uncovered what they say is the largest case of
insider trading ever at a hedge fund - netting an alleged 20 million dollars in
illegal profits, The Christian Science Monitor reported. Hedge funds have been
touted in recent years to wealthy investors and pension funds as a new "asset
class," to be tapped alongside traditional stocks and bonds. Often they rack up
solid returns while carefully hedging their bets (hence their name). But they
are also secretive, insular, and little regulated. Authorities said the arrests
on Friday show they are pursuing fraud at high levels of Wall Street with the
same determination, and the same tools, that they use on drug lords or mobsters,
the report says. "This case should be a wake-up call for Wall Street," said Preet
Bharara , US Attorney for the Southern District of New York, who announced the
arrests along with the FBI. |
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