July 09, New York: A federal grand jury in New York Tuesday found Rengan Rajartnam, the younger brother of Galleon Group founder Raj Rajaratnam, not guilty of conspiracy and securities fraud.
After deliberating for less than four hours, the jury found Rengan not guilty of conspiracy to commit insider trading with his brother, the one count he faced following the mid-trial dismissal of two more serious fraud charges.
Rengan Rajaratnam, who worked for his older brother as a portfolio manager at Galleon, was initially charged in March 2013 with seven counts of conspiracy and securities fraud. A year ago prosecutors dropped four counts without explanation.
The judge, Naomi Reice Buchwald dismissed two insider trading charges against Rengan Rajaratnam last week and allowed the jury to decide on the conspiracy charge.
The acquittal of the younger Rajaratnam, 43, who was living in Brazil at the time of his indictment, ended the federal prosecutors' winning streak on insider-trading trials.
His brother, Raj is serving an 11-year prison term after convicted by the Federal Court in New York in October 2011 for insider-trading.
At least 88 people have been charged in a federal crackdown on insider trading and the prosecutors under Preet Bharara, the United States attorney for Manhattan, secured victory in 85 of them until yesterday's ruling.