Galleon Group founder Raj Rajaratnam’s defence team have rested their case in the biggest hedge fund insider trading trial in the US history.

Mr Rajaratnam’s defence rested their case on Monday. The Government and defence will present closing arguments on Tuesday before the jury begins deliberations.

53-year-old Mr Rajaratnam is on trial in the US for alleged insider trading. He is accused of making more than $63 million from insider tips passed on by his friends and colleagues in the top financial circles of Wall Street.

The Sri Lanka-born billionaire did not take the stand in his own defence at the trial. During the past week, the defence argued that Mr Rajaratnam had traded on the information that was already in public domain.

On Monday, Manhattan Assistant Attorney Mr Jonathan Streeter continued with his cross-examination of Mr Gregg A Jarrell, a key defence witness.

Mr Jarrell, a professor of finance and economics at the University of Rochester, last week, produced analyst reports and press clippings to show that the content of the alleged tips was public information.

The prosecution, however, argued that an investor could trade both on a combination of public information as well as confidential information that he was getting from an insider.

“If you have tomorrow’s business news today, that is a great advantage,” Mr Streeter asked Mr Jarrell during cross-examination last week.

“If you have certainty in a world of uncertainty that is an advantage,” Mr Jarrell replied.

Mr Rajaratnam, who is charged with 14 counts of conspiracy and securities fraud, denies wrongdoing. If found guilty, he faces up to 20 years in prison.

Out of the 26 people arrested in the case, 19 have pleaded guilty.

Related Topics
comment COMMENT NOW