The younger brother of convicted inside trader Raj Rajaratnam—who was himself indicted on insider trading charges in March—is in talks with federal prosecutors over a possible plea agreement, according to a court filing made public Monday.
Rengan Rajaratnam, 42, who worked as a portfolio manager at the Galleon Group of funds founded by his brother, is accused of illegal insider trading involving the stocks of Intel, Advanced Micro Devices and Clearwire, among others. He pleaded not guilty to a seven-count federal indictment earlier this year.
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Now, in a letter to the court dated May 30 but made public Monday, Assistant U.S. Attorney David Massey confirms the two sides are in plea negotiations that began shortly after Rengan Rajaratnam's arraignment in March.
"In order to facilitate plea discussions with the defense," Massey writes, "the government provided a binder of key wiretap transcripts, summaries of trading records and other significant evidence to the defense."