(Updates with further details of proceedings)
By Nate Raymond
NEW YORK, June 17 Jurors were selected Tuesday
in the trial of Rengan Rajaratnam, a former Galleon Group hedge
fund manager accused of conspiring with his older brother, Raj
Rajaratnam, to engage in insider trading.
The seven women and five men picked as jurors for the
federal trial in New York include a history professor, an auto
parts delivery driver, a literary agent and a sanitation worker.
Prosecutors accuse Rengan Rajaratnam, 43, of conspiring with
his brother, the founder of Galleon, to trade on inside
information about technology companies Clearwire Corp and
Advanced Micro Devices Inc in 2008.
Prosecutors say a tip about Clearwire obtained by Raj
Rajaratnam and passed along to his younger brother enabled
Rengan Rajaratnam to earn $100,000 personally and Galleon to
Rengan Rajaratnam has pleaded not guilty. His lawyer, Daniel
Gitner, has argued that the government lacks evidence that his
client knew any inside information was disclosed for a personal
Dressed in a dark gray suit, Rengan Rajaratnam could be seen
at the start of Tuesday's proceeding talking with Julie
Blackman, a jury consultant known for advising white-collar
Past clients of Blackman have included SAC Capital Advisors
portfolio manager Michael Steinberg, Goldman Sachs Group Inc
board member Rajat Gupta, and Goldman Sachs vice president
One potential juror who was not selected told U.S. District
Judge Naomi Reice Buchwald that he was involved in the
production of a reality crime TV show.
"This is reality," Buchwald said.
Jury selection in the trial comes a day after the U.S.
Supreme Court left intact the insider trading conviction of Raj
Rajaratnam, 57, who 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.
Opening statements in Rengan Rajaratnam's trial were
expected on Wednesday. The trial is expected to last two to
The case is U.S. v. Rajaratnam, U.S. District Court,
Southern District of New York, No. 13-00211.
(Editing by Noeleen Walder and Jonathan Oatis)