NEW YORK – A New York City insider trading trial is underway for the brother of an imprisoned onetime billionaire hedge fund founder.
Opening statements are scheduled for Wednesday at the federal trial of Rengan Rajaratnam (RIHNG'-an rah-juh-RUHT'-nuhm). He has pleaded not guilty to securities fraud charges.
His brother, Raj Rajaratnam (rahj rah-juh-RUHT'-nuhm), is the founder of the Galleon Group of hedge funds. He is serving an 11-year sentence for making up to $75 million illegally.
The charges against Rengan Rajaratnam are an extension of charges brought against his brother and two dozen other defendants who pleaded guilty or were convicted.
Prosecutors made extensive use of wiretaps in an insider trading case for the first time during the federal investigation, which began more than six years ago.