Two men share securities regulation news

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Securities Regulation Daily, July 8, 2014

Rengan Rajaratnam acquitted of conspiracy charge in insider trading action

By Jim Hamilton, J.D., LL.M.

A federal jury in the United States District Court for the Southern District of New York acquitted former hedge fund manager Rajarengan “Rengan” Rajaratnam of conspiracy to commit securities fraud in an insider trading case (U.S. v. Rajaratnam, July 8, 2014).

Allegations. The government had alleged that the defendant participated in a scheme to defraud by obtaining, sharing and disclosing material inside information belonging to public companies and executing securities transactions on the basis of inside information. Manhattan U.S. Attorney Preet Bharara said that, while disappointed with the verdict on the sole count that the jury was permitted to consider, he respects the jury trial system whatever the outcome. In a statement, he added that his Office maintains its faith in the criminal justice system, a system that has resulted in the convictions by trial or guilty plea of 85 other defendants on insider trading charges and pledged to continue to seek justice in the investigation and prosecution of those who violate the securities laws.

Verdict. The verdict sends a powerful message that juries are willing and able to reach a not-guilty verdict if they don't believe the government has presented enough evidence to convict, said White & Case partner and former SEC Trial Attorney Greg Little. ``Fighting back against the government is not easy, but it is also not impossible. Those who are facing charges by the government should not assume a jury will agree with everything the government alleges, and a strong, well presented defense may result in a favorable ruling for the defendant,” emphasized Mr. Little, who added that the verdict may also have a chilling effect on the US Attorney's office and encourage them to bring only those cases where there is truly no doubt about the bad conduct being alleged.

The case is No. 13-cr-00211.

MainStory: TopStory FraudManipulation NewYorkNews

Securities Regulation Daily

Introducing Wolters Kluwer Securities Regulation Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.

A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.