Raj Rajaratnam, arrested for insider trading, also linked to Sri Lanka case

Raj Rajaratnam, who was arrested Friday for insider trading in the US, is also linked to a money-transfer case in Sri Lanka.

By , Staff writer , Contributor

  • close
    Galleon hedge-fund partner Raj Rajaratnam was escorted by FBI agents in New York Oct. 16 in what authorities are calling the largest insider-trading case against a hedge fund.
    View Caption

The world's 559th wealthiest individual and hedge-fund owner, who was arrested in New York Friday for insider trading, is not just in trouble with US authorities. Raj Rajaratnam, founder of the Galleon Group, is also connected with an indictment against a Sri Lankan member of Parliament and two others, according to the Daily Mirror of Sri Lanka.

The MP and his two accomplices were indicted for depositing $3 million in a private Sri Lankan bank without informing the nation's central bank, a violation of Sri Lanka's banking rules. According to the indictment, $1 million of the funds came directly from Galleon on Dec. 22, 2006, and $2 million were deposited by Mr. Rajaratnam on Jan. 3, 2007. The funds were intended to purchase shares in the Union Bank of Sri Lanka, according to the Mirror.

Rajaratnam,, a Tamil born in Colombo, Sri Lanka, and widely regarded as a Wall Street wonder boy for perpetual returns over 10 percent, was not indicted in that case. The trial, scheduled to begin Sept. 25, has been postponed until February.

Recommended: 5 countries where the death penalty is legal but rare

In the US case, federal investigators closed in on Rajaratnam through a series of wiretaps. Authorities say that the case against Rajaratnam and five codefendants is the largest ever against a hedge fund.

“He is not a master of the universe,” said Robert Khuzami, director of enforcement at the Securities and Exchange Commission, at a press conference Friday and reported by the New York Times' DealBook blog. “He is a master of the Rolodex.” According to the indictment, Rajaratnam and his codefendants "routinely received inside information directly or indirectly from insiders and provided it to each other for the purpose of trading based on the information," netting more than $20 million in illegal profits in 2006 and 2007.

Rajaratnam alone racked up more than $12.7 million in illegal profits for Galleon by trading on insider knowledge about companies including Hilton Hotels, Google, Akamai, and Advanced Micro Devices, according to the FBI.

While his wealth may seem astronomical, Rajaratnam is at the "lower" end of all-star fund managers in terms of income, banking "only" $200 million in 2008, for example, when some managers were hauling in over a billion.In Sri Lanka, Rajaratnam was known as a leading example of Tamils who left the country and prospered overseas. After the 2004 tsunami hit the coast, he set up a charity in the country and urged others to contribute funds for rebuilding. Last month, he put up $1 million to fund reintegration programs for Tamil Tiger fighters whose rebellion was crushed earlier this year.

Share this story:

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

eZ debug

Clear cache:

Quick settings:

Timing: Jul 09 2014 14:33:30
Script start
Timing: Jul 09 2014 14:33:30
Module start 'content'
Warning: eZDebug::accumulatorStop Jul 09 2014 14:33:30
Accumulator 'Search' does not exist, run eZDebug::accumulatorStart first
Warning: eZDebug::accumulatorStop Jul 09 2014 14:33:30
Accumulator 'Search' does not exist, run eZDebug::accumulatorStart first
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: path in /var/www/www.csmonitor.com/extension/ezwebin/autoloads/ezpagedata.php on line 158
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: path in /var/www/www.csmonitor.com/extension/ezwebin/autoloads/ezpagedata.php on line 175
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: path in /var/www/www.csmonitor.com/extension/ezwebin/autoloads/ezpagedata.php on line 158
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: path in /var/www/www.csmonitor.com/extension/ezwebin/autoloads/ezpagedata.php on line 175
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: meta_class_identifier_ms in /var/www/www.csmonitor.com/extension/ezfind/classes/ezfindresultnode.php on line 111
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: meta_class_identifier_ms in /var/www/www.csmonitor.com/extension/ezfind/classes/ezfindresultnode.php on line 111
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: meta_class_identifier_ms in /var/www/www.csmonitor.com/extension/ezfind/classes/ezfindresultnode.php on line 111
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: meta_class_identifier_ms in /var/www/www.csmonitor.com/extension/ezfind/classes/ezfindresultnode.php on line 111
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: meta_remote_id_ms in /var/www/www.csmonitor.com/extension/csm_base/classes/CSMFunctionCollection.php on line 1028
Warning: eZTemplate:def @ extension/csm_base/design/csm_design/templates/content/datatype/view/ezbyline.tpl:10[1] Jul 09 2014 14:33:30
Variable 'story_source' is already defined.
Warning: eZTemplate:def @ extension/csm_base/design/csm_design/templates/content/datatype/view/ezbyline.tpl:45[4] Jul 09 2014 14:33:30
Variable 'result' is already defined.
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: meta_class_identifier_ms in /var/www/www.csmonitor.com/extension/ezfind/classes/ezfindresultnode.php on line 111
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: meta_remote_id_ms in /var/www/www.csmonitor.com/extension/csm_base/classes/CSMFunctionCollection.php on line 1028
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: meta_class_identifier_ms in /var/www/www.csmonitor.com/extension/ezfind/classes/ezfindresultnode.php on line 111
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: meta_remote_id_ms in /var/www/www.csmonitor.com/extension/csm_base/classes/CSMFunctionCollection.php on line 1028
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: meta_class_identifier_ms in /var/www/www.csmonitor.com/extension/ezfind/classes/ezfindresultnode.php on line 111
Notice: PHP: E_NOTICE Jul 09 2014 14:33:30
Undefined index: meta_remote_id_ms in /var/www/www.csmonitor.com/extension/csm_base/classes/CSMFunctionCollection.php on line 1028
Timing: Jul 09 2014 14:33:30
Module end 'content'
Timing: Jul 09 2014 14:33:30
Before parse_includes
Strict: PHP: E_STRICT Jul 09 2014 14:33:30
Non-static method MugoViewExtras::get_view_extras() should not be called statically, assuming $this from incompatible context in /var/www/www.csmonitor.com/extension/mugo_view_extras/autoloads/template_operators.php on line 37
Warning: eZTemplate:def @ extension/csm_base/design/csm_design/override/templates/extra/archive.tpl:21[1] Jul 09 2014 14:33:30
Variable 'view_extra_node' is already defined.
Timing: Jul 09 2014 14:33:30
After parse_includes
Timing: Jul 09 2014 14:33:30
End

Timing points:

CheckpointElapsedRel. ElapsedMemoryRel. Memory
Script start 0.0000 sec0.0171 sec 1,286.1563 KB1,162.2969 KB
Module start 'content' 0.0171 sec0.9384 sec 2,448.4531 KB10,929.3281 KB
Module end 'content' 0.9556 sec0.0181 sec 13,377.7813 KB390.8828 KB
Before parse_includes 0.9737 sec0.0501 sec 13,768.6641 KB282.6250 KB
After parse_includes 1.0237 sec0.0009 sec 14,051.2891 KB-183.0781 KB
End 1.0247 sec  13,868.2109 KB 
Total runtime:1.0330 sec
Peak memory usage:16,306.5000 KB

Time accumulators:

 Accumulator Elapsed Percent Count Average
ini_load
Load cache0.0092 sec0.8918%360.0003 sec
Mysql Total
Mysqli_queries0.2572 sec24.8133%1550.0017 sec
Looping result0.0098 sec0.9450%1490.0001 sec
Template Total0.9758 sec 94.2% 7 0.1394 sec
Template load0.0086 sec0.8269%70.0012 sec
Template processing0.9670 sec93.3085%70.1381 sec
Template load and register function0.0003 sec0.0287%40.0001 sec
states
state_id_array0.0034 sec0.3307%80.0004 sec
state_identifier_array0.0051 sec0.4923%110.0005 sec
override
Cache load0.0083 sec0.7962%780.0001 sec
eZ Find
MoreLikeThis0.0000 sec0.0000%00.0000 sec
Query build0.0072 sec0.6914%10.0072 sec
Engine time0.0185 sec1.7889%10.0185 sec
Search0.3194 sec30.8167%20.1597 sec
Class attribute list0.0943 sec9.1021%10.0943 sec
Sytem overhead
Fetch class attribute can translate value0.0016 sec0.1561%30.0005 sec
Fetch class attribute name0.0003 sec0.0262%100.0000 sec
XML
Image XML parsing0.0056 sec0.5399%30.0019 sec
class_abstraction
Instantiating content class attribute0.0001 sec0.0109%100.0000 sec
General
String conversion0.0000 sec0.0030%30.0000 sec
dbfile0.0018 sec0.1725%430.0000 sec
View Extra building0.0202 sec1.9518%40.0051 sec
Total script time:1.0364 sec

CSS/JS files loaded with "ezjscPacker" during request:

CacheTypePacklevelSourceFiles
01a980f93dc967c6e39d52a11ae2108b_1404899611_all.cssCSS3extension/csm_base/design/csm_design/stylesheets/normalize.css
extension/csm_base/design/csm_design/stylesheets/html5b.css
design/standard/stylesheets/debug.css
extension/ezwt/design/standard/stylesheets/websitetoolbar.css
extension/csm_base/design/csm_design/stylesheets/jquery-ui-1.10.3.custom.min.css
extension/csm_base/design/csm_design/stylesheets/desktop.css
ede0a88fd146f1a095d27fb22227d0e5_1398846822.jsJS2extension/csm_base/design/csm_design/javascript/modernizr.js
extension/csm_base/design/standard/javascript/jquery-1.10.2.min.js
1650da1ba852ac5f9af81af07e8fa105_1404899611.jsJS2extension/csm_base/design/csm_design/javascript/jquery-ui-1.10.4.min.js
extension/csm_base/design/csm_design/javascript/json2.js
extension/csm_base/design/standard/javascript/jquery.cookie.min.js
extension/csm_base/design/csm_design/javascript/jquery.mobile.custom.min.js
extension/csm_base/design/csm_design/javascript/plugins/jquery.arthole.js
extension/csm_base/design/csm_design/javascript/plugins/jquery.sticky.js
extension/csm_base/design/csm_design/javascript/plugins/jquery.csmstory.js
extension/csm_base/design/csm_design/javascript/plugins/jquery.right_column.js
extension/csm_base/design/csm_design/javascript/plugins/jquery.csmstory_editorspickdialog.js
extension/csm_base/design/csm_design/javascript/plugins/jquery.sailthru_signup.js
extension/csm_base/design/csm_design/javascript/plugins/jquery.jcarousel.min.js
extension/csm_base/design/csm_design/javascript/plugins/jquery.history.js
extension/csm_base/design/csm_design/javascript/plugins/jquery.mainNav.js
extension/csm_base/design/csm_design/javascript/plugins/jquery.gallery.js
extension/csm_base/design/csm_design/javascript/plugins/jquery.staffdialog.js
extension/csm_base/design/csm_design/javascript/jQuery.rollChildren.js
extension/csm_base/design/csm_design/javascript/pubService_extended.js
extension/csm_base/design/standard/javascript/csm/csmNew.js
extension/csm_base/design/csm_design/javascript/jquery.quiz.js
extension/csm_base/design/csm_design/javascript/jquery.spectrumQuiz.js
extension/csm_base/design/csm_design/javascript/global.js

Templates used to render the page:

UsageRequested templateTemplateTemplate loadedEditOverride
1node/view/full.tplfull/article.tplextension/csm_base/design/csm_design/override/templates/full/article.tplEdit templateOverride template
14content/datatype/view/ezxmltags/paragraph.tpl<No override>extension/ezwebin/design/ezwebin/templates/content/datatype/view/ezxmltags/paragraph.tplEdit templateOverride template
2content/datatype/view/ezimage.tpl<No override>extension/csm_base/design/csm_design/templates/content/datatype/view/ezimage.tplEdit templateOverride template
14content/datatype/view/ezxmltags/link.tpl<No override>extension/csm_base/design/standard/templates/content/datatype/view/ezxmltags/link.tplEdit templateOverride template
2content/datatype/view/ezxmltags/strong.tpl<No override>design/standard/templates/content/datatype/view/ezxmltags/strong.tplEdit templateOverride template
1content/datatype/view/ezstring.tpl<No override>design/standard/templates/content/datatype/view/ezstring.tplEdit templateOverride template
1content/datatype/view/ezxmltext.tpl<No override>design/standard/templates/content/datatype/view/ezxmltext.tplEdit templateOverride template
1content/datatype/view/ezbyline.tpl<No override>extension/csm_base/design/csm_design/templates/content/datatype/view/ezbyline.tplEdit templateOverride template
1content/datatype/view/ezobjectrelationlist.tplcontent/datatype/view/story_images.tplextension/csm_base/design/csm_design/override/templates/content/datatype/view/story_images.tplEdit templateOverride template
1content/datatype/view/eztext.tpl<No override>design/standard/templates/content/datatype/view/eztext.tplEdit templateOverride template
1content/datatype/view/ezstring.tplcontent/datatype/view/image_credit.tplextension/csm_base/design/csm_design/override/templates/content/datatype/view/image_credit.tplEdit templateOverride template
1content/datatype/view/ezxmltext.tplcontent/datatype/view/story_info_box.tplextension/csm_base/design/csm_design/override/templates/content/datatype/view/story_info_box.tplEdit templateOverride template
1content/datatype/view/ezmatrix.tplcontent/datatype/view/ezmatrix_article_related_external_links.tplextension/csm_base/design/csm_design/override/templates/content/datatype/view/ezmatrix_article_related_external_links.tplEdit templateOverride template
1pagelayout.tpl<No override>extension/csm_base/design/csm_design/templates/pagelayout.tplEdit templateOverride template
1modules/mugo_view_extras/extra_cached.tpl<No override>extension/mugo_view_extras/design/standard/templates/modules/mugo_view_extras/extra_cached.tplEdit templateOverride template
1setup/debug_toolbar.tpl<No override>design/standard/templates/setup/debug_toolbar.tplEdit templateOverride template
 Number of times templates used: 44
 Number of unique templates used: 16
 Time used to render template usage: 0.0005 secs