Hedge Fund Boss' Employees Learned How to Cover Up Trades, Says Witness

Wednesday, March 30, 2011

In his second day of testimony, ex-trader Adam Smith testified that Raj Rajaratnam's employees at Galleon Group learned how to disguise trades to make them seem legitimate.

Smith told the Manhattan jury on Wednesday that the moves were masked by purchasing and selling many trades right before a large public announcement was made. This was to give the appearance that they were unsure of the future of the company, if government agencies ever ask.

Smith has plead guilty last year to insider trading and agreed to tap phone calls in a sweeping Wall Street probe.

With the Associated Press


More in:

Comments [1]

Tim from New Jersey

I was watching on CNBC as they discussed what really constitutes insider trading and it wasn't as cut and dry as you would think. It was Robert Anello speaking with the host.

Mar. 30 2011 11:11 PM

Leave a Comment

Email addresses are required but never displayed.

Get the WNYC Morning Brief in your inbox.
We'll send you our top 5 stories every day, plus breaking news and weather.


Latest Newscast




WNYC is supported by the Charles H. Revson Foundation: Because a great city needs an informed and engaged public


Supported by