Rajaratnam's brother loses bid to dismiss insider trading charges

Sat Apr 19, 2014 12:35pm EDT
 
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(This story from April 18 corrects the number of counts the judge called "inconsistent" from four to two in 3rd, 16th and 17th paragraphs)

By Nate Raymond

NEW YORK (Reuters) - Rengan Rajaratnam, the younger brother of imprisoned hedge fund manager Raj Rajaratnam, on Friday lost a bid to dismiss some of the insider trading charges leveled against him last year.

U.S. District Judge Naomi Reice Buchwald in Manhattan ruled that the indictment adequately alleged the essential elements of the crimes charged.

Buchwald agreed that two securities fraud counts were "internally inconsistent" with a conspiracy charge contained in the indictment.

But she withheld ruling on whether to dismiss them in order to allow the government to decide whether to proceed on those charges.

A lawyer for Rajaratnam did not respond to a request for comment. A spokeswoman for Manhattan U.S. Attorney Preet Bharara declined to comment.

The case, set for a June 17 trial, is one of a wave of insider trading prosecutions pursued by Bharara's office, resulting in 80 convictions since October 2009.

Raj Rajaratnam, founder of the hedge fund Galleon Group, received an 11-year prison sentence in October 2011 after a jury convicted him on charges related to insider trading.   Continued...

 
Rengan Rajaratnam, the younger brother of imprisoned hedge fund manager Raj Rajaratnam, departs Manhattan Federal Court in New York, March 25, 2013. REUTERS/Brendan McDermid