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Galleon US insider trading trial begins | Galleon US insider trading trial begins |
(about 1 hour later) | |
Jury selection in the long-awaited trial of billionaire hedge fund manager Raj Rajaratnam on charges of insider trading has begun in New York. | |
Some 150 potential jurors are being questioned by US District Judge Richard Holwell. | |
Prosecutors allege that Mr Rajaratnam made about $45m (£28m) in illegal profits from inside information. | Prosecutors allege that Mr Rajaratnam made about $45m (£28m) in illegal profits from inside information. |
Mr Rajaratnam, who was arrested in October 2009, has pleaded not guilty to the charges laid against him. | Mr Rajaratnam, who was arrested in October 2009, has pleaded not guilty to the charges laid against him. |
Some of Wall Street's best-known names could testify in the the trial, which is is expected to last several weeks. | |
He was met by photographers and camera crews as he arrived at the New York court for jury selection. | He was met by photographers and camera crews as he arrived at the New York court for jury selection. |
He has been free on bail of $100m. If found guilty, he could face more than 20 years in jail. | He has been free on bail of $100m. If found guilty, he could face more than 20 years in jail. |
Phone taps | Phone taps |
They will be paying close attention to the outcome of the trial in financial circles. | They will be paying close attention to the outcome of the trial in financial circles. |
Information is the lifeblood of traders. But there's a fine line between acting on rumours and tips, and acting on information that's private. | Information is the lifeblood of traders. But there's a fine line between acting on rumours and tips, and acting on information that's private. |
The government hopes this will help redefine that line, which is why this case could change how business is done on Wall Street. | The government hopes this will help redefine that line, which is why this case could change how business is done on Wall Street. |
The New York federal prosecutor has described the case as the "largest hedge fund insider trading case in history". | The New York federal prosecutor has described the case as the "largest hedge fund insider trading case in history". |
The Securities and Exchange Commission (SEC) said in its complaint filed earlier this year that the case involved "widespread and repeated insider trading" at a number of hedge funds, including Galleon. | The Securities and Exchange Commission (SEC) said in its complaint filed earlier this year that the case involved "widespread and repeated insider trading" at a number of hedge funds, including Galleon. |
According to the SEC, the alleged unlawful trading involved the use of inside information on companies including Hilton Hotels and Intel. | According to the SEC, the alleged unlawful trading involved the use of inside information on companies including Hilton Hotels and Intel. |
Incidents cited in court documents describe the passing of information on takeovers or company results before they were publicly released. | Incidents cited in court documents describe the passing of information on takeovers or company results before they were publicly released. |
Mr Rajaratnam then traded on that information, often on behalf of Galleon, the SEC alleges. | Mr Rajaratnam then traded on that information, often on behalf of Galleon, the SEC alleges. |
The US financial regulator estimated that the scheme generated $52m in "illicit profits or losses avoided". | The US financial regulator estimated that the scheme generated $52m in "illicit profits or losses avoided". |
Mr Rajaratnam founded the Galleon Group hedge fund, which managed about $7bn at the time of his arrest. | Mr Rajaratnam founded the Galleon Group hedge fund, which managed about $7bn at the time of his arrest. |
His personal wealth has been estimated at about $1.3bn. | His personal wealth has been estimated at about $1.3bn. |
More than a dozen people, including employees of some of America's biggest companies, including IBM and Intel, have been criminally or civilly charged in the complex case. | More than a dozen people, including employees of some of America's biggest companies, including IBM and Intel, have been criminally or civilly charged in the complex case. |
So far 19 have pleaded guilty. | So far 19 have pleaded guilty. |