Is Raj Rajaratnam The First of a New Hedge Fund Trial Wave?
FOX Business Network Senior Correspondent Charlie Gasparino reports that the conviction Raj Rajaratnam on charges of securities fraud and conspiracy is being used by the Federal Bureau of Investigation (FBI) as “as a starting point for plea deals in the future.” Sources tell Gasparino that rather than indicting top hedge funds and facing “costly trials” the FBI will look to plead out the cases.
On how the verdict in the Raj Rajaratnam insider trading trial will impact other hedge funds facing similar cases:
“Legal sources are telling FBN that the Fed sees the Raj verdict as a starting point for plea deals in the future. Sources tell FBN the Feds are eyeing these plea deals instead of going through a bunch of costly trials. Top hedge funds are really worried about the future and where they might stand in this thing. SAC Capital, Steve Cohen’s hedge fund, is one of the ones under the spotlight.”