16 December 2009

Preet Bharara, the U.S. Attorney for the Southern District of New York, and Joseph Demarest, Jr., the Assistant Director-in-Charge of the New York Office of the FBI, announced today that Raj Rajaratnam and Danielle Chiesi were charged with a 17-count indictment involving conspiracy and securities fraud crimes stemming from their alleged involvement in the largest hedge fund insider trading case in history. Rajaratnam was the Managing Member of Galleon Management, LLC (Galleon), and a portfolio manager for Galleon Technology Offshore, Ltd., and Chiesi was an employee of New Castle Funds, LLC ("New Castle"), formerly the equity hedge fund group of Bear Stearns Asset Management, Inc.
Rajaratnam, Chiesi and others repeatedly traded on material, nonpublic information pertaining to upcoming earnings forecasts, mergers, acquisitions, or other business combinations (Inside Information). The Inside Information was given as tips by insiders and others at hedge funds, public companies, and firms -- including Intel, IBM, McKinsey & Company (McKinsey), Akamai Technologies, Inc. (Akamai) and Polycom, Inc. (Polycom).
Specifically, these individuals engaged in insider trading in Polycom, Hilton Hotels Corp. (Hilton), Google Inc. (Google), Clearwire Corporation (Clearwire), Akamai, Advanced Micro Devices (AMD), and PeopleSupport, Inc. (PeopleSupport).

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