As head of a $7 billion hedge fund, Raj Rajaratnam’s phone often rang off the hook, and many of the calls were from corporate insiders who provided a gold mine of market-moving information.
Unbeknownst to Rajaratnam, though, federal agents tapped his phone and the Wall Street titan was ultimately found guilty of perpetuating one of the largest cases of insider trading in history.
Born in Sri Lanka, Rajaratnam grew up to become a self-made millionaire. He founded Galleon Group, which became one of the world’s largest and most powerful hedge funds. Galleon Group generated stellar returns for investors, but Rajaratnam’s success wasn’t built on his trading expertise alone. Rajaratnam tapped a vast network of Wall Street insiders to funnel him inside information.
Read on to go inside this Wall Street scandal!
By Drew SandholmPublished 7 March 2012