Mar 21, New York: Rengan Rajaratnam, the brother of the convicted Galleon Group founder Sri Lankan born Raj Rajaratnam was indicted Thursday on insider trading charges by a federal grand jury in New York.
Rengan Rajaratnam, 42, is accused of conspiring with his brother Raj to trade on non-public information about Clearwire Corp. (CLWR) and Advanced Micro Devices Inc. (AMD) in 2008, Manhattan U.S. Attorney Preet Bharara said in a statement today.
Raj Rajaratnam, the founder of the Galleon Group LLC was found guilty of 14 counts of security fraud and conspiracy at the high-profile insider trading trial in May 2011 and sentenced to11 years in prison.
Rengan has been accused of making almost $1.2 million on trades that occurred on March 24 and March 25 of 2008while working as a fund manager at Galleon.
He was charged with one count of conspiracy to commit securities fraud and six counts of securities fraud. Conspiracy carries a maximum five-year prison sentence, while fraud carries a 20-year maximum term.
However, Rengan, who was implicated at his brother's trial, remains at-large and his whereabouts aren't immediately known.