Billionaire’s kin tied to trading case
NEW YORK — The government has identified the brother of one-time billionaire hedge fund founder Raj Rajaratnam as a coconspirator in what authorities have called the biggest hedge fund insider trading case in history, a person familiar with the investigation said yesterday.
The person said Ragakanthan Rajaratnam is the person identified in court papers filed last week only as “CC-1.’’ That means coconspirator number one.
The person spoke on condition of anonymity because the younger brother of the hedge fund founder is not identified publicly by the government. The comments came after The Wall Street Journal first reported the development.
The Galleon fund’s founder has pleaded not guilty to securities fraud charges in an alleged scheme that prosecutors say has generated more than $50 million in profits. He remains free on $100 million bail.
His brother, who no longer works at Galleon, did not immediately return a call for comment left at his office at Clorox Co.
Kathryn Caulfield, a Clorox spokeswoman, said Rajaratnam works as vice president of global insight.
A spokeswoman for US Attorney Preet Bharara declined to comment.
Prosecutors have accused Raj Rajaratnam of leading an insider trading ring that enlisted the help of workers at publicly traded companies to provide secrets about upcoming earnings and acquisition announcements. A spokesman for Rajaratnam declined to comment.