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Jury finds Rengan Rajaratnam not guilty of conspiracy

The brother of an imprisoned ex-billionaire hedge fund founder has been acquitted of conspiracy.

A New York jury returned the verdict Tuesday at the federal insider trading trial of Rengan Rajaratnam.

His brother, Raj Rajaratnam, is the founder of the Galleon Group of hedge funds. He's serving an 11-year sentence for making up to $75 million illegally.

Two dozen other defendants have pleaded guilty or were convicted in the case.

Rengan Rajaratnam, founder of Sedna Capital Management and younger brother of imprisoned hedge-fund founder Raj Rajaratnam, arrives at federal court in New York, June 17, 2014.
Louis Lanzano | Bloomberg | Getty Images
Rengan Rajaratnam, founder of Sedna Capital Management and younger brother of imprisoned hedge-fund founder Raj Rajaratnam, arrives at federal court in New York, June 17, 2014.

Federal Judge Naomi Reice Buchwald had dismissed the two most serious charges in May.

After he was charged in the case last year, Rengan Rajaratnam came to the United States from Brazil, where he had been living.

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The case is part of a broad crackdown on insider trading by Manhattan U.S. Attorney Preet Bharara's office.

"While we are disappointed with the verdict on the sole count that the jury was permitted to consider..." Bharara said in a statement. "We will continue to seek justice in the investigation and prosecution of those who violate the securities laws of the United States."

—By The Associated Press with CNBC

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