Hedge fund chief's NY indictment deadline extended

AP News
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Posted: Nov 16, 2009 9:13 PM

New York City prosecutors say an indictment can be delayed against one of America's richest men in a massive insider trading case so negotiations to settle it can finish.

Federal prosecutors notified the court by letter Monday that the deadline for an indictment should be extended by a month while talks continue between the government and lawyers for billionaire hedge fund operator Raj Rajaratnam (RAHJ rah-juh-RUHT'-nuhm). A judge granted the extension until Dec. 16.

The Sri Lanka-born Rajaratnam is among 20 people charged in a $52 million insider trading case. The portfolio manager for the Galleon Group hedge fund remains free on $100 million bail.

Defense lawyer John Dowd said last month his client would be exonerated.

Prosecutors say talks were going on as recently as last week regarding a possible disposition of the cases.