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Episode 56: The Insider

Case File

The Insider

  • Good Fortunes
  • In 2008 Raj Rajaratnam was the head of a $7 billion-dollar hedge fund called Galleon Group. The fund generated stellar returns for investors and Rajaratnam's phone was ringing off the hook. Many of the calls were from corporate insiders providing a goldmine of market moving information.
  • Inside Information
  • Rajaratnam pressed his contacts for exclusive information. He convinced an old friend, Anil Kumar to be his personal consultant. Kumar worked at the prestigious firm McKinsey and Company and began to funnel secrets from his corporate clients.
  • The Beauty Queen
  • Danielle Chiesi was a former beauty queen turned hedge fund trader. Chiesi became one of Rajaratnam's best sources sending him tips that led to big profits on inside deals. Her top-secret information helped Rajaratnam make millions. He seemed untouchable, but behind the scenes his world was about to unravel.

Web Extras

  • American Greed: Raj Rajaratnam Preview     Friday, 2 Mar 2012 | 12:00 AM ET

    It's one of the biggest cases of insider trading in history: Raj Rajaratnam had it all, a wildly successful hedge fund, billions in the bank and the respect of Wall Street. But behind closed doors, Rajaratnam was gaming the system to the tune of $75 million-dollars!

  • Insider Trades That Brought Down Raj Rajaratnam Wednesday, 7 Mar 2012 | 12:12 PM ET
    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 goldmine 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

    Rajaratnam tapped a vast network of Wall Street insiders to funnel him inside information. Read on to go inside this Wall Street scandal!

  • FBI Expands Crackdown on Insider Trading Friday, 9 Mar 2012 | 11:55 AM ET
    Raj Rajaratnam, billionaire founder of the Galleon Group hedge fund, is led from FBI headquarters after being charged with alleged insider trading, New York City.

    From media campaigns to technological advancements, the Federal Bureau of Investigation is changing the way it combats insider trading.

  • Rajaratnam Sentencing     Friday, 2 Mar 2012 | 12:00 AM ET

    On October 13th, 2011, Raj Rajaratnam was sentenced to 11 years in prison, the longest sentence ever for an insider-trading case. CNBC's Scott Cohn was there.

  • Inside the Rajaratnam Story     Friday, 2 Mar 2012 | 12:00 AM ET

    Hear more from George Packer, staff writer at The New Yorker, as he describes how Raj Rajaratnam reeled in Anil Kumar to provide Rajaratnam with inside information in exchange for more than $2 million.

  • Rajaratnam's Indictment Friday, 7 Sep 2012 | 1:45 PM ET

    Raj Rajaratnam and Danielle Chiesi’s indictment includes details of the insider-trading scheme.

  • Rajaratnam Sentencing Memo Friday, 7 Sep 2012 | 1:45 PM ET

    On August 9, 2011, the United States Attorney’s Office for the Southern District of New York released this sentencing memo for Raj Rajaratnam.

  • Call Between Raj Rajaratnam and Danielle Chiesi Friday, 7 Sep 2012 | 1:46 PM ET

    Listen to the September 30, 2008 call between Raj Rajaratnam and Danielle Chiesi as they discuss insider dealings at Advanced Micro Devices (AMD).

  • Call Between Raj Rajaratnam and Rajat Gupta Wednesday, 6 Jun 2012 | 7:08 AM ET

    Hear the July 29, 2008 call between Raj Rajaratnam and Former Goldman Sachs Director Rajat Gupta, as Gupta divulges discussions from a Goldman Sachs Board Meeting.

American Greed Showtimes

Nicholas Cosmo: All Interest, No Return
Wednesday, July 9th 8pm ET/PT
Raffaello Follieri
Wednesday, July 9th 9pm ET/PT
Extreme Home Ripoffs/Greedings from Florida
Wednesday, July 9th 11pm ET/PT
Detroit’s “Crime Boss” Mayor
Wednesday, July 9th 12a ET/PT
Fine Art: A Portrait of Fraud
Wednesday, July 9rd 1a ET/PT
Bank Robbing Broker
Thursday, July 10th 7pm ET/PT
The Wealth Builder Club
Thursday, July 10th 9pm ET/PT
The Falcon & The Con Man
Thursday, July 10th 10pm ET/PT
The Cunning Cowgirl Crook/ Dollars For Dumps
Thursday, July 10th 11pm ET/PT
The Black Widows
Thursday, July 10th 12a ET/PT
Check the U.S. TV schedule for additional showtimes.
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