Jury has no verdict at NY insider trading trial

AP News
Posted: Apr 26, 2011 5:23 PM
Jury has no verdict at NY insider trading trial

A New York City jury has ended its second day of deliberations without a verdict in the biggest-ever insider trading case involving hedge funds.

Jurors spent part of Tuesday listening again to secretly recorded the phone calls of hedge fund manager Raj Rajaratnam (rahj rah-juh-RUHT'-nuhm) and other Wall Street insiders talking about the financial prospects for publicly traded companies.

Prosecutors at the Manhattan trial say the wiretaps prove that while head of the Galleon Group funds, Rajaratnam illegally made tens of millions by trading on inside tips about earnings and mergers.

Lawyers for the 53-year-old Rajaratnam have argued he relied on public information for his trading decisions.

He's the only defendant to go to trial so far. Twenty-one others have pleaded guilty.

The jury was to resume deliberating on Wednesday.