The Justice Department has managed to nail a hedge fund billionaire believed to be one of the many driving forces behind the financial crisis. The billionaire, the founder of the defunct hedge fund management firm Galleon Group, was convicted on 14 counts of fraud and conspiracy.
The Washington Post reports the department is using tactics developed to prosecute organized crime kingpins to expose insider traders who swapped secrets about upcoming mergers in order to manipulate the stock market. Government agents secretly taped conversations in which it claimed the information was illegally shared, and prosecutors managed to get former contacts of the billionaire to testify against him.
The government says the billionaire, who faces 15.5 to 19.5 years imprisonment, managed to prevent losses or reap gains totaling $64 million with the information.
Hedge fund billionaire Raj Rajaratnam is convicted of fraud [Washington Post]