* Rengan Rajaratnam charged with fraud, conspiracy
* Older brother serving 11-year prison term
By Nate Raymond
NEW YORK, March 21 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.
Prosecutors said Rengan Rajaratnam, 42, conspired with his
brother to trade on non-public information concerning Clearwire
Corp and Advanced Micro Devices Inc in 2008.
Rengan Rajaratnam was a portfolio manager at Galleon, and
the trades for which he was charged resulted in nearly $1.2
million of illegal profit, according to U.S. Attorney Preet
Bharara in Manhattan, who announced the charges.
The charges are part of a broad government crackdown on
insider trading. Since October 2009, 77 people have been charged
by Bharara's office in that probe, and 71 have been convicted.
Raj Rajaratnam received an 11-year prison sentence in
October 2011 after a jury convicted him the previous May. He is
"Rengan Rajaratnam and his brother shared more than DNA,"
Bharara said in a statement. "They also shared a penchant for
The U.S. Securities and Exchange Commission filed separate
civil charges against Rengan Rajaratnam, whose full first name
A lawyer for Rengan Rajaratnam did not immediately respond
to a request for comment.
The lawsuit alleged a broader scheme that netted $3 million
in illicit gains for himself and hedge funds he managed
following trades on stocks including Polycom Inc and
Rengan Rajaratnam was charged with six counts of securities
fraud and one count of conspiracy, and faces up to 20 years in
prison on each of the fraud counts.
He has not been arrested. Rajaratnam is not in the United
States and is believed to be in Brazil, a person familiar with
the matter said.
The cases are U.S. v. Rajaratnam, U.S. District Court,
Southern District of New York, No. 13-cr-00211; and SEC v.
Rajaratnam in the same court, No. 13-01894.