* Fourth day of deliberations ends without verdict
* Tense wait for jury decision to resume on Friday
* If convicted of insider trading Rajaratnam faces prison
(Adds comments by Rajaratnam's lawyer, byline)
By Grant McCool and Basil Katz
NEW YORK, April 28 Apart from the murmur of voices
and bursts of laughter, nothing was heard on Thursday from 12
jurors studying the evidence in hedge fund manager Raj
Rajaratnam's high-profile insider trading trial.
Unlike the past three days of deliberations, no notes emerged
from the jury room in Manhattan federal court asking for exhibits
or to hear replays of FBI phone taps central to what U.S.
prosecutors call the biggest probe of insider trading at hedge
funds on record.
The panel began its deliberations on Monday after hearing
seven weeks of often complex evidence. They will resume
deliberations on Friday in a shortened session of three hours
because of juror commitments, U.S. District Judge Richard Holwell
said in court.
Litigation experts are reluctant to analyze the behavior of
sitting jurors or predict when they will deliver a verdict, but
some say this panel has a lot of work to do in deciding the fate
of Galleon Group founder Rajaratnam.
"I think the volume of information there and the jury sensing
the importance of the case will likely cause them to take their
time," said Artur Davis, a former federal prosecutor and
congressman who is a partner at SNR Denton law firm in Washington
A conviction would likely lead to more probes involving the
use of secretly recorded phone calls and an acquittal would be a
huge blow to one of the U.S. Department of Justice's priorities in
fighting wrongdoing on Wall Street.
Tension brews over trial phone replays [ID:nN27180933]
Galleon Group case graphic r.reuters.com/jyk48r
Q+A-The case against Rajaratnam [ID:nN0798137]
The sound of several jurors laughing and even some clapping
was heard from the locked jury room adjoining the courtroom. At
other times, only the low murmur of voices could be heard.
Rajaratnam's seasoned defense lawyer John Dowd said during a
casual chat with reporters while waiting for the verdict that this
would be the last trial for him.
He said he would not take part in court arguments of the civil
case against Rajaratnam by U.S. market regulators, choosing to
hand it over to younger lawyers in the team.
"They're hungry," Dowd, 69, said and "I'm exhausted."
Sri Lankan-born Rajaratnam spent most of the day sitting with
Dowd and Terence Lynam in nearby courtrooms on the 17th floor of
the building where the trial began on March 8. The lawyers have
been colleagues for decades at Akin Gump Strauss Hauer & Feld LLP
in Washington, D.C.
The jury is considering prosecution evidence that Rajaratnam,
53, traded on corporate secrets leaked by highly placed insiders
such as a former director at Goldman Sachs Group Inc (GS.N), Wall
Street's most influential bank. The government accuses Rajaratnam
of making an illicit $63.8 million from 2003 to March 2009.
The defense team presented the panel with a blizzard of data
to show the one-time billionaire drew on a vast collection of
research and public information to make his trades, not secrets,
and asked for an acquittal.
If convicted on charges of securities fraud and conspiracy,
Rajaratnam could be imprisoned for up to 25 years. Rajaratnam, who
was arrested in October 2009, is the only one out of 26 charged in
the broad Galleon case to go on trial so far. Twenty-one have
To convict Rajaratnam, the government's evidence must convince
all of the panel beyond a reasonable doubt that he received
material nonpublic information from people who had a fiduciary
duty not to disclose it and that he knew it was wrong to trade on
During the long trial, Dowd said he has rarely slept past 2
a.m. Daily walks of about a mile between the Ritz Carlton Hotel
and the courthouse in lower Manhattan provided welcome solace from
the long days in court.
On Thursday the defense team -- which has numbered up to 10
lawyers at times -- closed its trial "war room" a few blocks from
the courthouse, the lawyer said.
Dowd, perhaps best known for investigating bets on baseball in
the 1980s by Cincinnati Reds great Pete Rose, has over the years
represented people including U.S. Senator John McCain and an
executive who played a key role in the Enron Corp scandal.
The case is USA v Raj Rajaratnam et al, U.S. District Court for
the Southern District of New York, No. 09-01184.
(Reporting by Grant McCool and Basil Katz; Editing by Phil