Feds to file new charges against Rajaratnam, claim insider profits are double what it thought
By APTuesday, January 5, 2010
Feds: New charges pending against Rajaratnam
NEW YORK — Prosecutors say they will file new charges against hedge fund operator Raj Rajaratnam (RAHJ rah-juh-RUHT’-nuhm) as they double the amount of profits they say he reaped from insider trading.
The government filed papers in federal court in Manhattan on Tuesday saying it will bring a superseding indictment against the billionaire. Prosecutors say they now believe Rajaratnam’s illegal profits from insider trades were at least $36 million.
Prosecutors say Sri Lankan-born Rajaratnam should be held without bail because he is a greater risk to flee because his ties to New York are dissolving.
A message seeking comment left with Rajaratnam’s lawyer was not immediately returned.
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