'Waiting for Superman' Hero Defends Hedge Fund Boss in Insider Trader Trial

Renowned educator Geoffrey Canada, who played a key role in the 2010 documentary "Waiting for Superman," testified Wednesday on behalf of hedge fund manager Raj Rajaratnam, who is on trial in Manhattan for alleged insider trading.

Canada, who was called by the defense team as a character witness, is a nationally known educator, widely admired for his work as Harlem Children's Zone CEO.

From the witness box, Canada said he met Rajaratnam seven or eight years ago when he was looking for new supporters for the Children's Zone. He said Rajaratnam immediately understood the HCZ mission, and opened his wallet in support of the cause.

Canada described Rajaratnam's desire to level the playing field for all children. He wanted poor and disadvantaged kids to have the same opportunities as his own children, who grew up in the home of a billionaire hedge fund manager.

If the prosecution saw any irony in this — Rajaratnam is accused of gaming the stock market for his own advantage — they didn't explore it. Prosecutors declined to cross examine Canada.

Canada later recalled the day in 2009 when he heard of Rajaratnam's arrest. Upon learning that bail had been set at $100 million, Canada volunteered to sign on as one of Rajaratnam's bail guarantors. 

"I have to say, I personally don't have the $100 million to guarantee," Canada said. 

The 53-year-old Rajaratnam has denied allegations that he used illegal inside information to gain a $68 million advantage on trades for his Galleon hedge fund. Prosecutors have called it the biggest hedge fund insider trading case ever.