Galleon's Rajaratnam remains free on $100 mln bail
Galleon hedge fund founder Raj Rajaratnam will plead not guilty to
any new government charges of insider trading, his lawyer told a judge
on Tuesday, as prosecutors raised the amount of his alleged illegal
profits to $41 million.
"If there is a superseding indictment we will plead not guilty,"
Rajaratnam's lawyer John Dowd told the judge in Manhattan federal court.
"As far as we are concerned, these are false accusations and we will
deal with it like the other accusations."
U.S. District Court Judge Richard Holwell ruled at the hearing that
Sri Lankan-born U.S. citizen Rajaratnam would be allowed to remain free
on $100 million bail, rejecting a prosecutor's request to detain him.
Prosecutors said last week that they were preparing additional
charges against Rajaratnam in what they have called the biggest hedge
fund insider trading case ever in the United States.
Dowd said his client was prepared to go to trial.
"We intend to plead not guilty and to demonstrate that he is
innocent," he said.
Rajaratnam, 52, is the most prominent defendant among 21 people
criminally or civilly charged in an insider trading case involving
employees of some of America's best-known companies, including
International Business Machines Corp, McKinsey & Co and Intel Capital,
an arm of Intel Corp. Rajaratnam and Danielle Chiesi, a former employee
of New Castle Funds LLC, are the only two defendants indicted so far.
Seven people, including a former director of McKinsey & Co management
consultants have pleaded guilty to charges of fraud and conspiracy.
Last week, former McKinsey & Co director Anil Kumar pleaded guilty,
saying Rajaratnam paid him $1.75 million for inside information over
several years.
On Tuesday, Dowd said he would prove that what Kumar said was "a
total fabrication."
U.S. prosecutor Josh Klein told the court that Rajaratnam's alleged
illegal profits may have been as much as $41 million or more, at least
$5 million more than previously alleged.
The cases are USA v Raj Rajaratnam et al, U.S. District Court for the
Southern District of New York, No. 09-01184 and USA v Zvi Goffer et al
in the same court, 09-mj-02438. Reuters
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