In a wire-tapped recording of a call, another McKinsey partner, David Palecek, “spilled his beans” and encouraged Rengan to buy AMD.
Despite trading on the tip, Galleon sold AMD for a loss due to market declines, prosecutors said. However, Rengan later earned $40,000 personally trading AMD, it was claimed.
Rengan’s attorney, Daniel Gitner, said his client was simply seeking investment advice from Palecek, who died in 2010.
Mr Gitner said yesterday that his client “looks forward to getting on with his life”.
Raj is currently serving an 11-year prison sentence after orchestrating one of America’s biggest insider trading scams. He was found guilty in 2011 of multiple counts of securities fraud that saw him use inside information to trade in the shares of companies including Goldman Sachs and Google. Prosecutors claim he made more than $70m (£45m) from the trades, while his lawyers say their client made just over $7m.
more
{ 0 comments... » Rajaratnam brother cleared of insider trading charges read them below or add one }
Post a Comment