Legal News

Prosecutors Lose First Insider Trading Case in Years
Download PDF

0709INSIDER-tmagArticle

Back in 2007, a case began involving Rengan Rajaratnam that centered around insider trading, according to The New York Times. Rajaratnam is a hedge fund trader. When the case began in 2007, it started a string of 85 consecutive insider trading convictions won by prosecutors without a loss.

The first loss suffered by prosecutors for insider trading came to Rajaratnam on Tuesday of this week. It took a federal jury of eight women and four men just under four hours to find Rajaratnam not guilty of conspiracy to commit insider trading with his brother.

  
What
Where


“They took their time and they had this evidence years ago,” said Richard J. Holwell, according to the New York Times. Holwell is a private practice lawyer and a former federal judge who presided over the trial for Rajaratnam’s brother. He sentenced the brother to 11 years in prison. “You can say that the government in the final analysis overreached, and that’s what the jury is for.”

The remaining insider trading charges were dismissed when the judge presiding over the case said that the prosecutors did not produce enough evidence to show Rajaratnam knew his brother had inside information about Clearwire in 2008.

Reed Brodsky, who tried the elder Rajaratnam and is now a partner at Gibson Dunn in New York, said, “Federal prosecutors and the F.B.I. will likely be very careful about charging downstream tippees where evidence of the tippee’s knowledge of the illicit benefit to the tipper is ambiguous or uncertain.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Browse all law firm attorney jobs in New York and apply fast on LawCrossing.com.



 

SEARCH IN ARCHIVE

Most Popular

Legal Career Resources

April 26, 2016 An Attorneys Competitiveness Can Turn to Anger

Summary: Attorneys can hold lots of anger, but when that anger is directed in the wrong direction, they destroy their own credibility and chances of success. Read Why Most Attorneys Are Angry to learn more. Attorneys can carry a lot […]

read more
To Top