NEW YORK – A New York judge has rejected a request by lawyers for a one-time billionaire convicted in an insider trading case to reverse the jury verdict.
Judge Richard Holwell (HAHL'-wehl) ruled Tuesday that evidence supported the conviction of Raj Rajaratnam (rahj rah-juh-RUHT'-nuhm). Rajaratnam founded the Galleon Group of hedge funds before becoming embroiled in what prosecutors called the biggest hedge fund insider trading case in U.S. history. The probe marked the first extensive use of wiretaps in an insider trading case.
Rajaratnam was convicted in May of securities fraud charges after a jury concluded he made trades based on inside information gleaned from friends and business associates.
Prosecutors say he earned more than $50 million in profits from his trades. Sentencing is set for September.
Rajaratnam's lawyers didn't immediately comment.