Raj Rajaratnam brother charged with insider trading

Raj Rajaratnam brother charged with insider trading Thu, Mar 21 18:39 PM EDT By Nate Raymond NEW YORK (Reuters) - Raj Rajaratnam's younger brother was indicted on charges of conspiring in the insider-trading scheme for which the founder of the Galleon Group hedge fund was convicted nearly two years ago, U.S. prosecutors announced on Thursday. Prosecutors said Rengan Rajaratnam, 42, conspired with his older brother to trade on non-public information concerning Clearwire Corp and Advanced Micro Devices Inc in 2008. Rengan Rajaratnam was a portfolio manager at Galleon, and the trades for which he was charged resulted in nearly $1.2 million of illegal profit, according to U.S. Attorney Preet Bharara in Manhattan, who announced the charges. Rengan Rajaratnam was charged with six counts of securities fraud and one count of conspiracy, and faces up to 20 years in prison on each of the fraud counts. He has not been arrested. He is not in the United States and is believed to be in Brazil, a person familiar with the matter said. David Tobin, a lawyer for Rengan Rajaratnam, did not immediately respond to a request for comment. The charges arise from a broad U.S. government crackdown on insider trading. Since October 2009, seventy-seven people have been charged by Bharara's office in that probe, and 71 have been convicted. The FBI and U.S. Securities and Exchange Commission are still investigating. Raj Rajaratnam, 55, received an 11-year prison sentence in October 2011 after a jury convicted him the previous May. He is appealing his conviction, as well as the government's use of wiretaps to obtain it. Wiretap evidence was also used in the case against Rengan Rajaratnam. "Rengan Rajaratnam and his brother shared more than DNA," Bharara said in a statement. "They also shared a penchant for insider trading." The SEC filed separate civil charges against Rengan Rajaratnam, whose full first name is Rajarengan. The SEC lawsuit alleges a broader scheme that netted $3 million in illicit gains for Rengan Rajaratnam and hedge funds he managed following trades on stocks including Polycom Inc and Hilton Hotels. The Polycom trade took place in January 2006 when Rengan Rajaratnam was a portfolio manager at Sedna Capital Management, which he founded in 2004. Before founding the firm, he worked briefly at Steven Cohen's SAC Capital Advisors LP as an analyst, the SEC said. 'GONNA RIP' Some of the allegations in the criminal case relate to activity that prosecutors said took place in March 2008. That made it an imperative to bring securities fraud charges on those allegations now, because of a five-year statute of limitations. Thursday's charges focus on two particular instances of Rajaratnam obtaining inside information. The first came in March 2008 after Rajiv Goel, then an executive at Intel Corp, told Raj Rajaratnam about Intel's plans to make a $1 billion investment in Clearwire. After a news report describing some details of that transaction surfaced, the younger Rajaratnam allegedly said on a phone call to his brother that the "Clearwire stuff ... just hit." "So, I don't know how much you got in today, but I think (Clearwire's share price) is gonna rip tomorrow," Rengan Rajaratnam said, referring to Raj Rajaratnam's Clearwire purchases that day and the possible direction of its stock price the next day. Prosecutors said Rengan Rajaratnam earned $101,070 from Clearwire trades in his personal brokerage account, while two Galleon funds he oversaw earned a combined $1.08 million. Goel cooperated with prosecutors in the probe. He pleaded guilty to conspiracy to commit securities fraud in 2010 and was sentenced in September to two years probation. SPILLING THE BEANS The second instance concerned information received from former McKinsey & Co director Anil Kumar, who was sentenced to two years probation last July following an earlier guilty plea to securities fraud charges. Prosecutors said that in August 2008 Kumar told Raj Rajaratnam about a deal between McKinsey client AMD and the Abu Dhabi Investment Authority, and that three hours later Raj Rajaratnam advised his brother about it. They said that after Raj Rajaratnam bought 3 million AMD shares for a hedge fund he managed and 250,000 shares for a fund his brother managed, Rengan Rajaratnam told his brother by phone that another McKinsey partner "spilled his beans" and "volunteered the information about the investments" in AMD. The other McKinsey partner is David Palecek, according to the SEC complaint. He died in 2010. Catherine Redlich, a lawyer who represented Palecek in the investigation, in an email said "there is no proof David ever agreed to provide inside information to the Rajaratnams and no proof that he received money or other benefits from them for doing so." A representative for McKinsey did not immediately respond to a request for comment. Former McKinsey chief Rajat Gupta is separately appealing his conviction and two-year prison term for feeding information to Raj Rajaratnam that he had learned from board meetings at Goldman Sachs Group Inc, where he had been a director. The cases are U.S. v. Rajaratnam, U.S. District Court, Southern District of New York, No. 13-cr-00211; and SEC v. Rajaratnam in the same court, No. 13-01894. (Reporting by Nate Raymond in New York; Editing by Gary Hill, Richard Chang, David Gregorio and Steve Orlofsky)

Black Pigeon Obama imitates White ducks!

In order for a black president Obama to be accepted by American power centres he has to behave more White than the Whites. Obama is currently busy trying to implement G.W. Bush neo-con Zionist agenda but many times over. He is extending the war on Afghanistan to include Pakistan, fomenting troubles in Latin America by sending troops to Columbia and trying to establish a Green Zone Republic inside Somalia.


In the Middle East, Obama is playing the game by Israeli Nazi rules. Obama seems to forget that he ran his election campaign and won on a humanitarian, liberal and peaceful agenda not on a right wing political platform. Many don’t realise that American presidents aren’t free to operate when they reach the Whitehouse as they owe too many favours to too many crooks, fraudsters, special interests, oil and military cartels, and above all, to the powerful Jewish mafia. By the end of his first term, Obama will look extremely odd as he would have forgotten how to behave as a liberal Black and the White Anglo Saxons Protestants would have never accept him as one of them. It is like a pigeon who tried to walk like a duck. After four years, he failed to walk like a duck and forgot his original pigeon walking steps.

Slowly but surely, people of the world, each in their own country, started to uncover Jewish conspircies and expose those implementing Jewish designs. The war on Iraq is being squarley blamed on the Jews who forced the Americans to march on Baghdad to Israeli drums. The American financial meltdown is being identified as a result of the greed of the Jewish financial mafia in control of US financial institutions.
Anti-Semitic attacks on Jewish businesses have doubled in one year in the UK, Germany and France. Judging on the present mathematics of reality, the next Hitler will be an American one. One Hitler wasn't enough.

A veteran politician once mentioned that Jews are too clever, they make the Americans fight their own wars. In turn, Jewish-controlled America controls NATO, the European Union and scores of client regimes.
One can't deny that the Jews are in control of the US financial institutions? One can't deny the fact that Jews are in control of the media from Hollywood to Manhattan, NY? And finally one can't deny that the Jews are in control of Washington D.C.? I can easily Google the names of the Jewish members of the boards of directors of Goldman Sachs, Bear Stern, Lehmann Brothers, Merrill Lynch, Citibank and bank of America. Did you know that Michael Bloomberg made $8 billion working for Goldmansachs, moved to the media and finally ened up as the mayor of NY with the hope of running for the US presidency. The Jews are fleecing America while the US Zombies are busy fighting Jewish wars.

Adnan Darwash, Iraq Occupation Times =============== Ex-Goldman director Gupta gets two-year prison sentence Wed, Oct 24 19:35 PM EDT 1 of 9 By Grant McCool and Basil Katz NEW YORK (Reuters) - Disgraced Wall Street titan and philanthropist Rajat Gupta was sentenced to only two years in prison, a much lighter sentence than U.S. prosecutors had demanded, even though the federal judge who imposed it on Wednesday called his insider trading crimes "disgusting" and "a terrible breach of trust." Gupta was also ordered to pay a $5 million fine. He was convicted in Manhattan federal court last June for leaking Goldman Sachs boardroom secrets to Raj Rajaratnam, the hedge fund manager at the center of a U.S. government crackdown on insider trading over the past four years. Some legal experts said the sentence came as a surprise, while others said the judge struck a fine balance. U.S. District Judge Jed Rakoff told a somber courtroom audience, including Gupta's wife and four adult daughters, that the illegal sharing of corporate secrets at the height of the 2008 financial crisis "was the functional equivalent of stabbing Goldman in the back." Gupta, 63, gave no visible reaction to the sentence, which was given at the end of a 30-minute statement in which the judge spelled out the businessman's "extraordinary" philanthropy over decades that stood in stark contrast to his crimes. Bill Gates, Microsoft Corp's co-founder, and former United Nations Secretary-General Kofi Annan were among 400 friends and luminaries who had written letters to the judge urging leniency. During Gupta's trial, the court heard how Gupta had tipped off his then friend and business associate Rajaratnam between September and October of 2008. Within minutes of a conference call of members of Goldman's board on September 23, 2008, Gupta told Rajaratnam that influential investor Warren Buffett was infusing $5 billion into the investment bank. Rajaratnam traded on the information as the market was closing. In his statement on Wednesday, the judge said the tip "was not only overwhelming, but it was disgusting in its implications ... a terrible breach of trust" at a time when Goldman Sachs was in turmoil. But the judge also said: "I have never encountered a defendant whose past history suggests such an extraordinary devotion ... to people in need." Rakoff ordered Gupta to begin his sentence on January 8, 2013. He denied Gupta's lawyer's bid to have him freed on bail pending an appeal, which could last as long as two years. The former Goldman director is the most influential corporate figure to be convicted in the wide U.S. probe of insider trading involving fund managers, traders, consultants and executives. He is a former global head of the McKinsey & Co management consultancy, and once sat on the boards of Procter & Gamble Co and American Airlines as well advising philanthropies including the Bill and Melinda Gates Foundation. Gupta's sentence was less than the eight to 10 years sought by prosecutors, but more than the punishment of probation and community service in Rwanda that Gupta's lawyers had proposal. The judge dismissed that proposal as "a kind of Peace Corps for insider traders." The sentence was also less than some other insider trading defendants who went to trial and received four, five and even 10 years imprisonment. Rajaratnam is serving an 11-year prison sentence, one of the longest for insider trading. Assistant U.S. Attorney Richard Tarlowe on Wednesday argued for a sentence of at least eight years, telling the court "Mr Gupta knew as much about the sanctity of these types of corporate confidences as anybody, and that's what makes it so shocking." New York securities class action and shareholder rights lawyer Mark Rifkin said the judge "understood both sides of the argument, and the relatively light sentence he imposed balances Gupta's misuse of his position against a lifetime of good work." But Andrew Stoltmann, an attorney and investor rights advocate based in Chicago, wondered whether Gupta's "Mother Teresa-like halo" had warranted a sentence that was "little more than a slap on the wrist." "He had such an important role at some of these companies that it is kind of the ultimate betrayal of trust." When Gupta took his turn to address the court, he read for six minutes from a prepared statement, using bland language that stopped short of fully admitting his conduct, but apologizing to "extraordinary institutions and outstanding people" he knows and to his family.

"I feel terrible that they have been burdened with totally undeserved negative attention. I apologize to them and ask for their forgiveness."

Federal judges have wide leeway in sentencing, and Rakoff has a reputation for veering from guidelines designed for courts in handing down punishment. Gupta had faced a maximum sentence of 20 years for securities fraud and five years for conspiracy. Gupta's lawyer, Gary Naftalis, arguing for a lenient sentence, said his client had suffered a "fall from grace of Greek tragedy proportions." "This was an iconic figure who had been a role model for countless people around the globe," Naftalis said. "He is no more." The case is USA v Gupta, U.S. District Court for the Southern District of New York, No. 11-cr-907. (Reporting by Grant McCool; Editing by Martha Graybow, Matthew Lewis, Gary Hill) ========== Ex-Goldman director Gupta seeks conviction reversal Tue, Jan 22 15:01 PM EST 1 of 2 By Nate Raymond NEW YORK (Reuters) - Lawyers for former Goldman Sachs Group Inc board member Rajat Gupta are urging a federal appeals court to reverse his insider trading conviction, arguing that a judge shouldn't have allowed wiretaps to be heard at trial. In a brief filed Friday at the 2nd U.S. Circuit Court of Appeals in New York, Gupta's lawyers argued wiretaps of now-imprisoned hedge fund manager Raj Rajaratnam amounted to "hearsay statements" and should not have been presented to the jury. "Without a proper basis for admission, these untestable, unreliable hearsay statements had no place in a criminal trial, and their admission alone compels reversal," Gupta's lawyers wrote. A federal jury convicted Gupta, 64, in June of leaking Goldman boardroom secrets to Rajaratnam, the Galleon Group hedge fund manager at the center of a wide-ranging U.S. probe into insider trading. Gupta, who was at one time head of management consultancy McKinsey & Co, was sentenced by U.S. District Judge Jed Rakoff to two years in prison. The 2nd Circuit in December said Gupta could remain free on bail while he appeals his conviction. A trial is scheduled to begin February 11 in a separate civil lawsuit by the U.S. Securities and Exchange Commission. Of the four counts Gupta was charged with in the criminal case, his lawyers said Friday that the jury only convicted him on the two backed by wiretaps of Rajaratnam, who is serving an 11-year sentence following his own conviction in May 2011. Gupta's lawyers say the wiretaps amounted to hearsay evidence, since they were of conversations between Rajaratnam and other Galleon Group employees, rather than with Gupta. Gupta's lawyers said he was also prevented from presenting evidence of an alternative perpetrator and of Gupta's integrity. The defense lawyers say they weren't allowed to present testimony by Gupta's daughter about a conversation where her father said he was angry at Rajaratnam for allegedly cheating him out of millions of dollars through a joint investment fund known as Voyager Capital Partners. The conversation took place three days before one of the alleged tips Gupta was convicted on and a month before a second, the brief said. Gupta contends that if the testimony had been presented, the jury would have been led to question Gupta's motives to tip Rajaratnam. Terence Lynam, a lawyer for Raj Rajaratnam, in a statement denied that his client "swindled" Gupta, as the appellate brief claimed. "No funds of Mr. Gupta were ever misappropriated and Mr. Gupta was not 'swindled' in any way," Lynam said. A spokeswoman for Manhattan U.S. Attorney Preet Bharara declined comment. The government is scheduled to respond with its own appellate brief March 15. The case is USA v. Rajat Gupta, 2nd U.S. Circuit Court of Appeals, No 12-4448. (Reporting by Nate Raymond in New York; Editing by Phil Berlowitz, Bernard Orr) ===================