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A FORMER HEDGE fund titan has been convicted in an insider-trading case, thanks largely to weapons prosecutors have using against mobsters and drug lords for years: wiretaps.
What that means for his former peers depends on whether it’s true, as his lead attorney asserts, that what he did “happens every day on Wall Street.”
Federal prosecutors used nearly three dozen recordings at trial to back up their claim that Raj Rajaratnam, worth $1.3bn in Forbes’ most recent estimates, made his fortune by coaxing a crew of corporate tipsters into giving him an illegal edge on blockbuster trades in technology and other stocks.
In a clear signal of the tapes’ importance, the US District Court jurors asked several times to rehear some of the recordings before convicting Rajaratnam of all 14 counts: five of conspiracy and nine of securities fraud.
Rajaratnam could be heard wheeling and dealing with corrupt executives and consultants — in one case demanding “radio silence” on information that could affect a stock price.
The tapes spelled the demise of a defendant who “was among the best and the brightest, one of the most educated, successful and privileged professionals in the country,” US attorney Preet Bharara said in a statement. ”Yet, like so many others, he let greed and corruption cause his undoing.”
Authorities have said the recordings represent the most extensive use to date of wiretaps in a white-collar case. The defense had fought hard in pretrial hearings to keep the evidence out of the trial by arguing that the FBI obtained it with a faulty warrant.
Once a judge allowed the recordings in, prosecutors put them to maximum use by repeatedly playing them for jurors, who convicted Rajaratnam on their 12th day of deliberations.
Bharara’s office “took wiretaps for a test drive, and I’d say it was a resounding success,” said Stephen Miller, a former federal prosecutor now in private practice in Philadelphia.
The tapes were “a gold mine,” said Steven Scholes, an attorney in private practice in Chicago who formerly worked in the Securities and Exchange Commission Division of Enforcement. “There’s an old saying that you can’t cross-examine a tape,” he said.
Prosecutors had alleged that illegal tips allowed the 53-year-old Rajaratnam to make profits and avoid losses totaling more than $60 million. His Galleon Group funds, they said, became a multibillion-dollar success at the expense of ordinary stock investors who didn’t have the advance notice he enjoyed of mergers, acquisitions and earnings reports.
On Wednesday, Rajaratnam sat at the defense table, a rarity for him at the trial, and stayed motionless as the verdict was read.
After the jurors were dismissed with a warning from Judge Richard Holwell not to talk about deliberations, assistant attorney Jonathan Streeter asked Holwell to jail Rajaratnam.
The defendant’s overseas bank accounts and properties give him the means to flee, and the prospect of a lengthy prison term gives him a “tremendous incentive” to do so, Streeter said.
But the judge ruled that Rajaratnam could remain free on $100 bail as long as he was placed under house arrest at his Manhattan home to await sentencing on July 29. Prosecutors said he faces a possible prison term of roughly 16 to 19 years under federal sentencing guidelines. Financial penalties including fines and restitution have yet to be determined.
Outside court, with Rajaratnam at his side, defense attorney John Dowd said there will be an appeal filed with the 2nd US Circuit Court of Appeals. Of the 37 trades that the government sought to prosecute, he added, only 14 made it to trial.
“The score is 23-14 in favour of the defence,” he said. “We’ll see you in the 2nd Circuit.”
AP
There you are, Enda. The people have spoken. Don’t be undemocratic now, and force us to vote again.
…and please don’t block efforts for reform.
I think you will find that a lot of people voted no in the belief that it meant abolition. As in NO we don’t want it. Not everybody gives a lot of time or even any time to figuring out what yes or no meant in this instance.
Meehole would lose his sh!t if they did that, despite his party doing it to us twice!
That’s insulting to people’s intelligence
Mcbab, if that many people are so stupid that they can’t figure out a simple ballot paper (or two) then I’m happy that those idiots didn’t get what they wanted. But to be honest I find it hard to believe that there are that many people that are that moronic.
So your blaming who for that ???
Yeah. Sure. That’s what happened.
No end to ye’er excuses, is there?
Mcbab that has to be the single most stupid comment I’ve heard in a decade.
FF you put this country on its knees in the first place…. Do not put this win on your bed post. Its people of Ireland who finally stood up and were counted
yawn
ff put us on our knees, and then the labour and Fg coalition doused us in petrol, lit the match and gently pushed us out to see!!!
FF built this country up from nothing and today the people decided that they were the ones to listen to.
I didnt listen to them and i voted NO
Speak for yourself, SeanieRyan. I voted no and didn’t even think about what FF wanted. It just wasn’t relevant.
Seanie please don’t be offended but how old are you ???
26 not that that is any business of yours.
I listened th them and voted NO!! :)
@Seanie.
easy tiger !!!
Your age explains why you’re enthusiastic about FF.
Ask a few grown ups !!
Get your head out of your arse seanie
@Duncan, couldn’t have put it better myself. History not a strong point with the young lad.
FF probably did more damage then anything else in the cause of keeping the seanad from being abolished! This is not their victory and anyone claiming it as such is a fool.
And FG , Labour and the others stood by and watched them do it !! In my book they are all guilty of neglect !!!
What’s foolish is denying that the referendum result is a shot in the arm for FF. Look at the capital that SF made out of Lisbon 1.
Imo the importance of keeping or abolishing the Seanad pales next to the importance of not allowing FF the oxygen of success. Alas it’s an unequivocally good day for them.
Seanie, Fianna Fail have bankrupt this country three times in my lifetime and I’m not even fifty yet. Fools keep voting for them and their populist nonsense.
I think it’s very very funny to hear FFailed claiming this as their “victory”, and the comments from people who voted “no” just add to my amusement. Jaysus you’re naive.
Democracy won today! And me too, I had 50euro on a 6/1 No vote ;)
This was a victory for the people not ff.i voted no because i wanted to not because of ff
it was FF canvassers that got their vote out, that went door to door and convinced people that they were right – the seanad needed to be kept. They made it happen.
Maybe you might feel that posting comments online swung it but we both know that that is not what really did it.
Even idiots can be right sometimes, though I think you are overestimating their power to influence.
Have you talked to any swing voters? Every one I’ve met says it was the TV debate. Martin made mincemeat of Bruton, but the pundits never have the balls to call it.
They didnt knock on my door .i dont need failures knocking on my door to sway my vote.like most people i presume we do have a mind of our own tho you seem to be lead and said by the fianna failures
Maybe you were in bed Catherine. They might have done an early afternoon canvass. You call people failures for taking part in defending our democracy.
I voted No despite FF not because of them.
Why do you presume i was in bed
Bit of a snide little qant, aren’t you Seanie.
Seanie seems an arrogant, jumped up little sh!t just like his FF heroes.
John.
I return the serve that people make themselves.
There is too much snide comments against party members and reps and I’m not going to be bullied off what is quickly become crank central.
You are ill informed Sean. FF do not hold any sway. This victory is not theirs to claim.
The impertinence is shameful.
What utter crap, the margin would have been greater if Fianne Fáil hadn’t been involved.
No way back
No FF came to my door !! I voted NO because it was the right thing to do !!!
Seanie , everybody knows FF are a shower of W@nkers in this country.
Dear Enda this was a victory for democracy and the power of the people – listen to it because if you continue to dictate and show such arrogance we’ll vote you out faster than you came in ! Now stop grovelling to the troika and Angela – grow a pair and start looking after the people of this country as you said you would do before you were elected and get jobs for the unemployed, stop taxing us to death, and fix the economy
Well said!!!
Victory for democracy? Surely every democratic election is a victory for democracy?
How is the retention of an institution that is elected by only a small portion of the population a victory for democracy?
Fianna Fail celebrating…..I feel I’m going to puke.
Some of you people never learn.
Or maybe you were’t aware of what a NO vote was all about.
Either way.
Another step backward for Ireland❗
How is it a step backward when nothing has actually changed?? Makes no sense
Yawn. You lost. Get over it.
More democracy, not less.
It feels good, and I think all leaders who called for a yes vote should step down.
I think all leaders who called for a yes vote should step down.”
– I think all the leaders and politicians who have betrayed this country should step down – would there be many left ??
We,re Back….the soldiers of destiny ride again
It is a great set up for the Local elections and Europe next year. Nothing like success to breed success.
FF nearly cost us the seanad.
You must be joking the soldiers of destiny fianna fail ,the party who would sell their souls to the devil they won jack shit.The people of Ireland have spoken,not the people of fianna fail.
The following is the best toast I have heard today, so ill copy and paste it here. A toast to all the no voters!
“Tonight I shall be listening to Led Zeppelin, very loud, whilst having a few sherries, of which I have started already. Cheers to everyone who voted NO, cheers to you also Enda, you can kiss my wrinkly old a**!”
(Angela Kelly) aka the resident grumpy gradmother
Cäcilia Duvall…
There is only one toast that springs to mind…Burnt toast.
The Irish voters have once again been mislead by a party that drove them into misery and financial ruin.
You NO voters are sheer unbelievable and you deserve the ensuing consequences.
So you think that if YES won, it would be a FG win, if NO won, a FF win?
Sorry Antonov, but there is much more to Ireland than two cosy clubs of power hungry incompetents.
the ensuing consequences of not having our constitution butchered?
And you have a very narrow view on things if you think FF campaigning is the reason Dame Enda’s folly failed
Brilliant :-)
A yes would have been a triumph for FG, Labour (kinda), SF and the left parties.
Like it or not, the no vote was a triumph for Michael McDowell, the senators and, above all, FF.
F**k off FF!!
Why don’t you F off. Only good for anger and impotent rage. FF got their vote out and carried the day. You do not want to give the ordinary party activists credit because that will not tie in to your narrative of anger.
The people carried the day not ffailed
It was thousands of FF activists that got the vote out, gave people an understanding on the doorstep in wind and rain over the last few weeks.
I’m not sure why you can’t give thanks where thanks is due for people giving up their evenings for the good of the country.
I’ll leave you to snipe on the Journal.ie with your fellow angry gang members. I’m off to celebrate.
Don’t try to claim the credit here Seanie, the fact that FF wanted a No vote had nothing to do with the result.
The relatively low turnout and the complacency of the Yes side is what brought about the result.
Don’t read the defeat of of this amendment as a sign that the Irish people are ready to get back in bed with your party.
Are you for real ff got the vote out.do you actually think people listen to those failures.you seem to have a very low opinion of the electrate.how come they never got the people out in the last GE when they got humiliated
People were fearful over the international crisis in 2011. The only outlet they had was in the General Election.
FF have always had an excellent record of delivering their voter base to the booth. This happened once again. It was not all a FF vote but it certainly was a majority of the No vote.
Who else got the vote out?
Ehh maybe the people
You seem to want ff to have credit for this.will they take the credit for destroying this country for god knows how many future generations
Seanie what flavour is Michael Martins mickey?
@ Seanie Ryan. You can only speak for yourself; if Fianna Fail got you out, fine, but many people like me voted no in the hope of seeing reform – something Fianna Fail have had the opportunity to do over decades of rule but chose not to – instead they allowed the Seanad become a stop gap for those on the way up & those on the way out. People like Prof John Crown & Katherine Zapone influenced my vote – not any elected representative to the lower house or Seanad member from the main parties.
Such a silly boy
NOW ENDA, where did you screw up?
where didnt he?
That’s fantastic news, now the two houses will be reformed and we’ll have efficient, inclusive government the envy of the world….
I love your optimism! It would have been so much easier to get rid. But the people have spoken.
A sad day for Ireland and a victory for the elites
so 51.7% of Ireland are elites? If you don’t like democracy then move to russia.
What elites? Nonsense comment
Yawn. You lost. That’s democracy. Get over it.
Mayo with the highest level of support for abolition. Dublin with the biggest bite to retain.
They do like being on the losing side, those Mayo lads and lassies!
It is no wonder my family are emigrating, keeping hold of a Monty python talk shop. That I have no say in, but our taxes are paying their wages. It is no wonder we are the butt of jokes around the world. A shameful day and Fine Gael were never a hundred per cent behind it either. Make it worse the gangster party Fianna Fail will try and claim credit. A shameful day for all concerned. Finally, the vote should be made mandatory to stop the rot of Apathy which this country so obviously suffers from.
Seamus.
How dare you call people who are taking part in politics here as a “gangster party”. A disgusting and disgraceful comment.
If that is all your family have to offer this country then maybe they are better heading away. Nothing positive to contribute.
You want to go and get that chip on your shoulder seen too!!
@Seanie,come back to the table when you are a bit older and have a bit more life experience under your belt. I am old enough to remember the years of damage that Fianna Fail have inflicted on this country and we are still paying for it.
What in the name of God are you schiting on about. Democracy in action and you think it’s shameful? Tell me, based on what extensive research can you claim that we are the butt of jokes around the world? I haven’t seen or heard any. Indeed I would suggest that this referendum will barely register with the rest of the world. The Seanad costs every citizen an average of €1 A YEAR. Tax payers probably paying €5 a year for it. Wow. What price ddemocracy? Somehow I doubt that fiver will keep your family in the country.
More democracy, not less, is what we need. A day to be proud, and not ashamed, of a people that refused to have a part of democracy taken away from them.
Now reform, give everyone a vote, give emigrants the university seats and run the election four weeks after the Dail one with no failed Dail candidate eligible to run.
You lost. Get over it and stop talking schite.
@Alan, ease off on the Guinness, you are talking gibberish.
The elites are the chosen few who actually vote for senators. Have you a vote?
So that’s going to be the level of debate. I have a different opinion therefore I have been drinking!!
Some right bitter losers around here tonight.
The Irish people gave their opinion. To call that shameful is breathtaking hubris.
Im an ordinary working class lad from ballymun. I have a seanad vote. I most certainly am not in the elite
More elite than me so
Ff disgusting gangsters
Let’s not forget that Kenny was not the only coward , Adams also bottled it & sent out Mary who looked like she had been tangoed! The shiners also got a kicking today!
Adams is a coward anyway!!
Thought Sinn Fein were going for a No. Surprised to see them going the opposite way They must have been wearing the wrong shoes
FF jumping on bandwagon again. Pathetic
Hopefully the Seanad will be reformed [ and that such reforms will not be put on long finger to be done ” sometime ”- and voting for it will be open to all who are eligible to vote in General Elections etc – and hopefully it will use its hoped for new powers wisely – and perhaps act as brake on any lower House excesses.
Surely Fine Gael have a duty of care to report their leader missing? He hasn’t been seen all week….
Nothing to do with Fianna Fáil, in fact the margin would have been greater but for their involvement.
Nothing to do with ff for me, just concern of to much power in one house, also I listened to the debate in trinity, the no vote senator made way more sense to me, can’t rem
Feck lads it’s not an FF victory…we still hate ye!!
Great result today for the Irish people! Also showed Sinn Fein’s true colours to say they backed abolition is a disgrace
….. wondered meself why they backed abolition? What have they in common with FG me wonders?
It would have been a crime to close another care home
Tough Enda. Arrogance and dictatorials lose out to democracy and truth, let this be the first step in the people versus power grabbers crusade.
Absolutely delighted it was a NO vote, as I voted, nothing whatsoever to do with any political party, just didn’t want ANY government having the only/last say in anything…dictatorship stuff…
I suspect a large proportion of the No vote (those who bothered to vote that is) was a F*** You to the current government and had very little to do with the merits or otherwise of abolishing an irrelevant talking shop!
Fianna Fail crowing about a great day for democracy & getting their vote out is frankly a load of cobblers!
Personally I didn’t bother my arse voting, win or loose will make absolutely no practical difference in the real world where most of us have to live….
If you didn’t vote then your opinion cannot be taken seriously. Grow up. Voting is both a right and a privilege in this world.
Didn’t vote so don’t comment. Your opinion isn’t needed
If you think your vote makes a blind bit of difference you are utterly naive; has anyone told you Santa isn’t real and there is no such thing as the tooth fairy by the way?
I like how Senator John Crown adds in the second ‘mini-celebration’ at 0.07 seconds (in the first clip above).
He’ll be giving himself extra licks tonight!!
The people have voted to keep spending on the civil service high , so anyone who voted to keep the elite in plush jobs and expenses can’t moan about any future budget cuts , the expenses they get are excessive and the people have voted to keep them that way .
No they haven’t. They’ve voted not to abolish the Seanad. Spending is a separate issue. Explain just who these elites are?
The Senate is not the Civil Service. If you determine absolutely every item of expenditure by how much you will save by eliminating it, the country will just close down because no money will be spent on anything.
That’s one through the heart for Chairman Mayo and about time the People have spoken to end this dictatorship.
Off corse they toasted the win… they created the wasteful environment they all the seanad
So what is it about the Seanad that people wanted to keep it and how is that a victory for Democracy?
Just amazing how much talk about FF having it influence or not influence their vote . Michael Martin ….. Job done.
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