Raj Rajaratnam

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Raj Rajaratnam
Raj Rajaratnam.jpg
Occupation Founder
Employer Galleon Group (Closed in 2009)
Location New York

Raj Rajaratnam is founder of the hedge fund Galleon Group, which managed $3.7 billion before Rajaratnam was arrested in October 2009 on charges of insider trading.[1] He was convicted of securities fraud in 2011 and given an 11-year prison sentence.

In the months following Rajaratnam's arrest, investors began pulling money from the firm and, by November 2009, Gallen initiated an "orderly wind-down" of operations. Galleon is now defunct.

In June 2013, a federal appeals court upheld the conviction, which was challenged by Rajaratnam's lawyers, who argued that the wiretaps used by the government to nab Rajaratnam were illegal. [2]


Rajaratnam was born in Sri Lanka in 1957, and moved to England in the late 1970s to study at the University of Sussex.

After graduating from college, Rajaratnam began his career as a loan officer at Chase Manhattan. In 1985 he joined boutique investment bank Needham & Co., where his focus was technology sector investment management. While at Needham, he began a hedge fund which he would later purchase and rename Galleon. He became known as an aggressive buyer and seller of technology shares, but was also the target of several federal investigations, including the acceptance of inside information, the setting up of an illegal tax shelter, and violations of Securities and Exchange Commission stock trading rules.

By the time of Rajaratnam's trial in 2011, 21 Galleon employees had been arrested in connection with the insider trading schemes, which involved trading on inside information in such technology companies as IBM, Google, Polycom, and Advanced Micro Devices.

Prior to his arrest in 2009, Rajaratnam was listed as the world's 236th richest person in the world, with a net worth of $1.8 billion, according to Forbes Magazine.[3]


Rajaratnam earned a bachelor's degree in engineering from the University of Sussex (England) in 1980 and an MBA from the University of Pennsylvania's Wharton School of Business in 1983.[4]