| WASHINGTON, June 16
WASHINGTON, June 16 The U.S. Supreme Court on
Monday left intact the insider trading conviction of Galleon
Group hedge fund founder Raj Rajaratnam.
The court declined to hear Rajaratnam's appeal, meaning a
June 2013 decision by the 2nd U.S. Circuit Court of Appeals in
New York upholding the conviction is the final word in the case.
The appeals court rejected Rajaratnam's argument that
wiretap evidence was used improperly to convict him.
Rajaratnam is serving an 11-year prison term. A federal jury
convicted him in May 2011 of nine counts of securities fraud and
five counts of conspiracy.
The government said Rajaratnam, whose firm once managed $7
billion, made as much as $63.8 million in illicit profit from
2003 to March 2009 trading on stocks including eBay Inc,
Goldman Sachs Group Inc and Google Inc.
Prosecutors said the Goldman trades included trades during
the 2008 financial crisis, just after Rajaratnam got a tip from
Goldman director Rajat Gupta of an infusion in the bank from
Warren Buffett's Berkshire Hathaway Inc.
An insider trading trial involving charges against
Rajaratnam's younger brother Rengan, is expected to begin on
Tuesday, also in Manhattan federal court. Since October 2009, 81
people have pleaded guilty or were convicted at trial in insider
trading cases in Manhattan.
The case is Rajaratnam v. United States, U.S. Supreme Court,
(Reporting by Lawrence Hurley; Additional reporting by Nate
Raymond and Jonathan Stempel; Editing by Howrad Goller)