April 12, 2010 / 11:53 PM / 8 years ago

U.S. reviewing Goldman, AT&T trades in Galleon probe

NEW YORK (Reuters) - Goldman Sachs Group Inc, AT&T Inc and Cisco Systems Inc are among stocks that Galleon hedge fund founder Raj Rajaratnam and others involved in a sprawling insider trading probe bought and sold illegally, federal prosecutors said.

The disclosure of the additional stocks are in addition to many others that the government had previously identified in indictments against Rajaratnam and others.

Prosecutors revealed the additional stocks in a letter dated March 22 to Rajaratnam’s lawyers, who included it in an April 9 filing in Manhattan federal court.

A representative for Rajaratnam’s lawyers could not immediately be reached for comment on Monday.

Rajaratnam, a Sri Lankan-born U.S. citizen, was arrested last October 16 in an insider trading case that has since expanded to 21 defendants. Prosecutors call it the biggest hedge fund insider trading case in the United States. Much of the evidence was gathered using wiretaps.

In the March 22 letter, the U.S. Department of Justice said “almost all” of the other companies whose shares Rajaratnam and others traded on the basis of illegal inside information “are clearly disclosed in the wiretap applications, intercepted calls, and consensually recorded calls.”

The government letter said the trading in Goldman took place from around June to October 2008, in Cisco around July 2008, and in AT&T around August 2008.

The letter, which lists 21 companies in all, does not say that any employees of those companies tipped Rajaratnam, or that the companies themselves were involved in any wrongdoing.

A criminal trial for Rajaratnam and co-defendant Danielle Chiesi, a former trader with New Castle Funds LLC, is scheduled to start on October 25.

Eleven defendants have pleaded guilty to fraud charges in the case. Eight, including former friends and associates of Rajaratnam, have agreed to cooperate with investigators.

The case is USA v Rajaratnam et al, U.S. District Court for the Southern District of New York, No. 09-01184.

Reporting by Grant McCool; Editing by Richard Chang

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