14 Charged as Galleon Insider Trading Case Widens

Feds finger Rajaratnam associates, lawyer

By Marie Morris, Newser Staff

Posted Nov 5, 2009 1:13 PM CST

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14 Charged as Galleon Insider Trading Case Widens — Danielle Chiesi is led in handcuffs from FBI headquarters in New York, Oct.16, 2009. Chiesi and four others, including Raj Rajaratnam, were arrested. (AP Photo/ Louis Lanzano)

Two former Galleon Group employees and a Ropes & Gray lawyer were among 14 people charged today in the expanding insider trading case surrounding the hedge fund founded by Raj Rajaratnam, who was busted last month. The traders and lawyers snuck around, communicating in code over throwaway cellphones, but had the FBI on their tails for more than 2 years, the New York Times reports.

The SEC puts the total profits from the scheme at $53 million, up from the $40 million the feds originally estimated, the AP reports. Asked whether the case was just the tip of a Wall Street iceberg, US Attorney Preet Bharara responded, "We don't have an answer to that but we aim to find out."
(More insider trading stories.)

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