Insider Trading Conviction: Alleged terrorism supporter found guilty of conspiracy and fraud
Sri Lankan-born American and founder of the hedge fund management firm Galleon Group, Raj Rajaratnam, was found guilty in criminal court of all charges against him, including five counts of conspiracy and nine counts of securities fraud.
The FBI arrested Rajaratnam in October 2009, days before victims of Liberation Tigers of Tamil Elam (LTTE) terror attacks and their families filed a civil lawsuit against Rajaratnam and his father for financially supporting the LTTE and its violence. "Today's verdict further showcases the quality of Mr. Rajaratnam's character and his disregard for the lives and livelihood of others," said Motley Rice member and anti-terrorism attorney Michael Elsner.
As stated in the criminal case U.S. v. Rajaratnam (09 Cr. 01184 RJH) in the U.S. District Court for the Southern District of New York, Rajaratnam has earned more than $60 million in insider trading profits. Plaintiffs in Krishanthi et al v. Rajaratnam et al, the civil case in the U.S. District Court for the District of New Jersey, allege Rajaratnam and the Rajaratnam Family Foundation donated more than $5 million to the Tamil Rehabilitation Organization (TRO). In 2007, the U.S. Department of Treasury designated the TRO as a "charitable organization that acts as a front to facilitate fundraising and procurement for the LTTE."
Read more about the anti-terrorism lawsuits in a full article featured by The New York Times.
Learn more about the terrorist financing litigation that Motley Rice attorneys have filed on behalf of clients against the alleged financiers and material supporters of terrorist organizations.