Trial of Rajaratnam's brother ends as defense says U.S. case flawed

Mon Jul 7, 2014 5:00pm EDT
 
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By Nate Raymond

NEW YORK (Reuters) - A lawyer for Rengan Rajaratnam on Monday compared the government's insider trading case against the younger brother of Galleon Group founder Raj Rajaratnam to a jigsaw puzzle where the pieces had been wrongly jammed together.

In closing arguments in New York federal court, Daniel Gitner, Rengan Rajaratnam's lawyer, told jurors what remained of the case against his client, a former Galleon fund manager, "doesn't fit together."

In no wiretapped phone call did Raj Rajaratnam tell his brother he was trading on inside information, Gitner said. Nor was there proof Rengan Rajaratnam entered into a conspiracy to engage in insider trading, he said.

"They can't finish the puzzle they are so desperate to finish," Gitner said.

But Randall Jackson, the prosecutor who made the government's closing argument, said the brothers engaged in "obvious criminal activity" that allowed Rengan Rajaratnam to personally earn $40,000 trading on inside information about technology company Advanced Micro Devices Inc AMD.N in 2008.

"He is a coconspirator," Jackson said. "His brother embraced him."

The case is part of a broad crackdown on insider trading by Manhattan U.S. Attorney Preet Bharara's office that has resulted in 81 convictions since October 2009. Bharara and some top officials from the office were in the courtroom on Monday.

Jury deliberations are expected to begin on Tuesday.   Continued...

 
Rengan Rajaratnam exits the U.S. District Court for the Southern District of New York in Lower Manhattan June 17, 2014.  REUTERS/Brendan McDermid