Insider Trading Case Rajaratnam Prosecuting Himself With His Own Words

The prosecution’s insider trading trial against Galleon’s Founder Raj Rajaratnam is now in its fourth week and it appears that the strongest evidence comes from Rajaratnam’s own words caught on the wiretap on his phone. Admitted source Anil Kumar testified that he had vacationed with Rajaratnam and that he had been paid $1 million as a bonus for a tip that earned Rajaratnam $20 million. He also explained how while they sat on deck chairs outside Rjaratnam’s Miami condo, the hedge fund manager took a call on the beach with a tip that Cisco would be buying another company. Kumar traded on this tip using his laptop. Rajaratnam also told Kumar that he had been told to be really careful because a former employee was wearing a wire and Rajaratnam told Kumar to take precautions by using prepaid phones making it harder for investigators to track them. If the jury believes Kumar, whose testimony is supported by Rajaratnams own words in his conversations with others, then the prosecution has won its case. This kind of evidence, when supported by other evidence is extremely difficult to surmount and not the kind of information that can be argued away by counsel.