The New York Time reports that U.S. prosecutors are readying insider trading charges against Rajarengan Rajaratnam, a younger brother of the imprisoned hedge fund manager Raj Rajaratnam, according to a person briefed on the case.
According to the newspaper, during Raj Rajaratnam’s trial in 2011, Rajarengan Rajaratnam, who worked for his brother at the Galleon Group hedge fund, was heard speaking on several wiretaps of incriminating conversations that were played for the jury. Prosecutors identified him as an unindicted co-conspirator in the case.
Charges could be filed in the next month, this person said. There is an urgency to bringing an indictment against Rajarengan Rajaratnam, who goes by Rengan, because the five-year deadline for bringing securities fraud charges on certain trades is set to pass in the coming weeks.
He now lives in Brazil. If prosecutors charge him, they would have to use extradition laws to return him to the United States.
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image: © Ian Brown