Insider Trading, Galleon Group | featured news

A younger brother of Raj Rajaratnam was charged with insider trading on Thursday, nearly two years after the founder of the Galleon Group hedge fund was convicted of that crime.

A former Wall Street titan was convicted Wednesday of making a fortune by coaxing a crew of corporate tipsters to give him an illegal edge on blockbuster trades in technology and other stocks — what prosecutors called the largest insider trading case ever involving hedge funds.

A former Goldman Sachs Group Inc director has been charged by a U.S. regulator with leaking inside information to Galleon Group founder Raj Rajaratnam.

Federal authorities have arrested eight more people in connection with the Galleon insider-trading scandal, sources familiar with the matter said on Thursday.

Galleon Group is winding down all its hedge funds, company founder Raj Rajaratnam told employees and investors in a letter. The decision comes after his arrest and charges in a massive insider-trading case.