Hedge Fund Boss Took Loss on Trade Despite Tip, Says Witness
Tuesday, March 15, 2011
Hedge fund boss Raj Rajaratnam, accused of insider trading, took a hit on a trade even though he had been tipped off, according to a government witness who testified in Manhattan court Tuesday.
In a secret recording played for jurors, Rajaratnam, founder of the Galleon Group, told an employee he "had a big bet" on a multibillion-dollar deal that was then a secret but was announced the following day.
Rajaratnam learned about the deal from Anil Kumar, the financial consultant accused of paying for insider information.
As the market was plummeting in 2008, Kumar said the deal went through and that Rajaratnam lost "quite a bit."