Rengan Rajaratnam, the younger brother of imprisoned hedge-fund founder Raj Rajaratnam, was taken into custody by FBI agents Sunday when he arrived at John F. Kennedy International Airport on a flight from Brazil, a person familiar with the matter said.
Rengan Rajaratnam, 42, is accused of conspiring with his brother Raj to trade in 2008 on material nonpublic information about Clearwire Corp. (CLWR) andAdvanced Micro Devices Inc. (AMD), Manhattan U.S. Attorney Preet Bharara said.
Rengan Rajaratnam was accompanied on the flight by FBI agents who arrested him once on U.S. soil, said the person, who asked not to be identified because they aren’t authorized to speak publicly on the matter. Rajaratnam is set to appear today for an initial hearing in Manhattan federal court.
Prosecutors alleged that Rengan, while working as a fund manager at Galleon, made almost $1.2 million from trades that occurred on March 24 and March 25 of that year based on tips provided by his brother and his Rolodex of insiders.
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