Hurl out U.S. Wiretaps , argues Rajaratnam
By siliconindia   |   Tuesday, 05 October 2010, 21:29 IST   |    1 Comments
Printer Print Email Email
Hurl out U.S. Wiretaps , argues Rajaratnam
New York: Galleon Hedge Fund founder Raj Rajaratnam, designated on fraud charges,has challenged the authority of the U.S. wiretap investigators and claims that the investigators have recklessly omitted in seeking permission to record his telephonic conversation in an insider trading probe. Normally, Wiretaps are tactics used in drug and organized crime cases. The case marks the first time wiretaps were used in a widespread probe of insider trading on Wall Street. John Dowd, Rajaratnam's lead attorney laid evidence to the Manhattan Federal court saying that, "in applying for wiretap permission in March 2008, an FBI agent failed to tell a judge about prior lengthy probes of his client" and submitted evidence regarding,'four million document and transcripts of investigators interview with Rajaratnam and Galleon employees which once managed $7 billion'. Galleon was wound down after Rajaratnam's arrest last October. Dowd further said that, "the information that have been presented clearly shows that FBI agent B J Kang was aware of the every single fact but omitted them". He also pinpointed that, "this wiretap application was purely a boilerplate copied from an earlier application". Dowd then added saying that,"he would call four witnesses, including three who had worked for the government on the case". U.S. prosecutor Jonathan Streeter told the judge in an opening statement in the hearing that none of the three "were being knowingly deceitful or engaging in the kind of recklessness that calls for the sanction of suppression of evidence." When authorities charged Rajaratnam, and the former New Castle Funds LLC trader Danielle Chiesi last October and November, U.S. prosecutors described the case as the biggest probe of insider trading at hedge funds in the U.S. and added that if convicted they may face as many as 20 years in prison.

Digital Supply Chain Transformation – Winning the AI/ML Way