New York February 12, 2010, 13:44
Sri Lankan born billionaire Raj Rajaratnam, facing charges in
an insider-trading probe, has filed an emergency motion
in an appeals court to block the ruling of a Federal court
to hand over wiretap recordings in a separate civil suit
to the Securities Exchange Commission.
The Wall Street Journal reported that the Rajaratanam’s
lawyer wrote in a court order that the order "forces two
defendants in a pending criminal action to disclose in
civil discovery almost 20,000 sealed, untested wiretaps
of their own private telephone conversations," which is
against wiretapping rules.
Earlier this week, federal prosecutors added new criminal
charges based on informations they received from co-defendants
who have pleaded guilty in what has been described as the largest
insider trading scheme in US history.
The new charges are based on information received from three accused --
two Indian Americans Goel and Kumar -- and Mark Kurland, the founder
of the hedge fund called New Castle.
In October last year, Galleon hedge fund founder, Rajaratnam was
slapped with 12 charges, four counts of conspiracy and eight
counts of security fraud.
The government lawyers have now added two more securities
and fraud charges to the list, and estimates that he reaped
illegal profits worth $45 million.
This is the first case to use authorised wiretaps and the
investigators are still on the job.
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