| NEW YORK, July 17
NEW YORK, July 17 The U.S. Securities and
Exchange Commission and Rengan Rajaratnam, the younger brother
of convicted Galleon Group founder Raj Rajaratnam, on Thursday
asked a judge to stay the regulator's civil lawsuit for 60 days
while they try to reach a deal.
In a joint letter filed in Manhattan federal court Thursday,
lawyers for both parties asked U.S. District Judge John Koeltl
to keep the regulator's insider trading case on hold while they
"discuss resolving the pending litigation."
The request was filed nine days after a jury in the same
courthouse acquitted Rengan Rajaratnam, 43, of conspiring with
his brother to engage in insider trading following a three-week
Koeltl had frozen the civil case while the criminal
prosecution remained pending.
An SEC spokeswoman declined to comment. Daniel Gitner,
Rajaratnam's defense lawyer, did not immediately respond to a
request for comment.
Prosecutors had accused Rengan Rajaratnam, a former
portfolio manager at Galleon, of participating in an insider
trading scheme with his brother involving technology companies
Clearwire Corp and Advanced Micro Devices Inc in 2008.
The SEC lawsuit included some of the same allegations but
also contended Rengan Rajaratnam engaged in a broader scheme
involving additional stocks and trading during his time at Sedna
Capital Management, a fund he founded.
The acquittal for Rajaratnam represented the first loss in
more than 80 insider trading cases brought by Manhattan U.S.
Attorney Preet Bharara since 2009 as part of a major crackdown.
Raj Rajaratnam, 57, was found guilty at trial in 2011 and is
serving an 11-year prison sentence.
The case is SEC v. Rajarengan Rajaratnam, U.S. District
Court for the Southern District of New York, No. 13-cv-1894.
(Reporting by Joseph Ax; Editing by Richard Chang)