Defense Case Begins in Insider Trading Trial

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A loyal employee for a hedge fund founder charged in an insider trading case said his ex-boss was a hard-charging businessman.

Richard Schutte, a former executive with the Galleon Group, testified Monday as one of the first defense witnesses at the Manhattan trial of former boss and Galleon founder Raj Rajaratnam.

Schutte said Rajaratnam — who was arrested in 2009 on charges he parlayed inside tips into $53.8 million in profits — was focused and demanding at morning meetings. He was "the most prepared of any of us," Schutte told jurors.

"It was impressive to watch," he said.

The MIT grad was hired by Rajaratnam in 2004: "I thought very highly of Mr. Rajaratnam," Schutte said.

With the Associated Press