Chidem Kurdas
Sounds like Galleon chief Raj Rajaratnam did alright by his clients, whatever he did by securities laws. While he and a significant number of associates face lengthy civil and criminal lawsuits for insider trading, the hedge fund’s investors may get out of the debacle whole.
Galleon portfolios have been sold at a profit and most of the money has been returned to its owners, according to an investor. But a portion is still being held in Galleon’s accounts, pending an annual audit—a regular procedure. Once the audit is completed and the auditor signs off, investors are to get their full share.
The liquidation of Galleon’s several-billion-dollar holdings started in October 2009, after it became clear that Mr. Rajaratnam faced serious charges and investors rushed to the exit.
He is fighting the charges but 11 people have pleaded guilty so far in the widening insider trading investigation.
Tags: Galleon, Raj Rajaratnam
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