U.S. Charges 6 in Record Insider Trading Case

Galleon Group founder Raj Rajaratnam and five others were charged with engaging in the largest ever hedge fund insider-trading scheme, generating profits of more than $20 million over several years, U.S. prosecutors, the FBI and the SEC said Friday.

Insider trading by hedge funds Galleon and New Castle and Intel’s Intel Capital unit took place in shares of Hilton Hotels Corp, Google Inc, IBM, Advanced Micro Devices Inc and other stocks, according to two complaints filed in U.S. District Court in New York.

All six accused have been arrested, a spokeswoman for the federal prosecutor’s office in Manhattan said. The case could represent an important development in the government’s enforcement of securities laws, she said.

{snip}

SRI LANKA TITAN

One of the criminal complaints accuses Rajaratnam, considered the richest Sri Lankan in the world, of conspiring with Intel employee Rajiv Goel and Anil Kumar, a director of powerful management consulting firm McKinsey & Co. The alleged offenses took place for about three years starting in January 2006.

{snip}