Feds to sink Galleon Group founder's brother?

    

NEW YORK State prosecutors claim Rengan Rajaratnam, kid brother of Galleon Group founder Raj Rajaratnam, is also guilty of insider trading.

Federal court jurors were played a recorded phone call between disgraced ex-McKinsey & Co. partner Anil Kumar, and the defendant, discussing non public information about the AMD computer chip maker's decision to offload manufacturing to Clearwater Inc., back in 2008.

Kumar's tech stock tip off spurred the Rajaratnam brothers to purchase Advanced Micro Devices Inc. and Clearwater Inc. stock ahead of a public announcement about the deal, prosecutors say.

Kumar, a 55-year-old analyst, received two years on probation in 2010 and then turned State's witness to sink Galleon Group's founder, Raj Rajaratnam, age 57, who received an eleven year jail term in 2011.

Kumar received $2 million in secret payments from Rajaratnam snr, initially paid into a Swiss bank account but then transferred back to the States via an account in the name of Kumar's housekeeper without her knowledge.

His former McKinsey boss, Rajat Gupta - age 65, was also targeted by the FBI and received a two year jail break in 2012 which was only confirmed 17 June 2014 after the Indian American exhausted all sentence appeal processes.

The case is U.S. v. Rajaratnam, case No. 13=00211, in U.S. District Court for the Southern District of New York.

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