Galleon Group founder Raj Rajaratnam, who earned his MBA from the Wharton School in 1983, was arrested Friday for allegedly taking in more than $20 million in an insider-trading scheme.
Prosecutors and the Securities and Exchange Commission allege that Rajaratnam traded based on inside information about the stocks of companies such as Google and arrested him on multiple counts of conspiracy and security fraud.
The FBI also arrested five others on Friday in what prosecutors have described as the biggest inside trading case ever involving a hedge fund.
The others arrested include Intel Capital director of strategic investments Rajiv Goel, McKinsey & Co. director Anil Kumar and senior vice president of International Business Machines Corporation’s Systems and Technology Group Robert Moffat.
The criminal complaint accuses Rajaratnam of using confidential information given by insiders at hedge funds and investment firms to execute trades.
U.S. Attorney Preet Bharara announced in a news conference that the FBI made these arrests after authorities caught the conversations between the suspects on a court-authorized wiretap.
Forbes magazine ranks Rajaratnam as one of the richest people in the world, estimating his worth to be around $1.3 billion.
The judge set Rajaratnam’s bail at $100 million and ordered him to stay within 110 miles of New York City.
University officials declined to comment on Rajaratnam’s arrest.
Note: This article was updated to clarify that Rajaratnam is an MBA graduate.Comments powered by Disqus
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