FBI Uncovers ‘The Largest Hedge Fund Insider Trading Case in History’

The arrests, made early Friday, targeted high level executives at firms such as IBM and Intel, as well as hedge funds and consulting companies, the highest profile of which was Sri Lankan billionaire hedge fund manager Raj Rajaratnam and his New York-based hedge fund advisory firm Galleon Management LP. According to the Securities and Exchange Commission (SEC), which also filed charges against the sextet, Rajaratnam utilized his extensive contacts in the business world to get nonpublic information on corporate activity for companies such as Intel, Google and Sun Microsystems, which he then used to make trades on behalf of his hedge fund, generating roughly $25 million for him and his associates.