19 October, 2020

A Hot Tip For Icarus

On whom will the dust of Raj Rajaratnam’s crumbling kingdom settle?

T. Narayan
A Hot Tip For Icarus
outlookindia.com
-0001-11-30T00:00:00+05:53

In the end, Raj Rajaratnam convicted himself thanks to his garrulous mouth. After the Colombo-born founder of the Galleon Group of hedge funds was found guilty on all of 14 counts of conspiracy and securities fraud (translation: trading stocks based on insider information), some of the jurors said they were more convinced by the wiretaps presented by the prosecution at the trial than by the verbal evidence given. In tape after tape, Rajaratnam and his web of informants were heard openly exchanging tips and boasting of the inside information they had gathered. Rajaratnam, 53, now faces 20 years in jail.

The Galleon case is the biggest insider trading trial in a quarter-century, and certainly one of the very few to find the defendant guilty of all charges. In his downfall, Rajaratnam has sucked in a number of South Asian executives in US business, leading some to wonder whether there is a flaw in how South Asians have been taught and act.

By far the most prominent person caught up in this web is Rajat K. Gupta, former managing...

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