Galleon fund chief disputes government claims

AP News
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Posted: Nov 24, 2009 7:50 PM

One of America's richest men is defending himself against a massive insider trading case by saying he did not cheat and the government misled a judge to obtain wiretaps.

Billionaire hedge fund operator Raj Rajaratnam's (RAHJ rah-juh-RUHT'-nuhm) lawyers made the arguments in papers filed Tuesday in federal court in Manhattan.

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.

Rajaratnam's lawyers say he based trades on information that was already public. They also say the government misled a judge to surreptitiously tape phone conversations by Rajaratnam and others.

Prosecutors declined comment.