Nine New Arrests Made in Galleon Scandal
Nine new arrests were made today in the Galleon hedge-fund scandal, bringing the total charged to fifteen. The newly arrested include an additional Galleon employee, attorneys affiliated with the group, and employees with the Incremental Capital hedge fund.
The Galleon Group case is the largest hedge-fund scandal in history, responsible for bringing in over $20 million in illegal profits through insider trading. Previously arrested in the case were Galleon Group founder Raj Rajaratnam and several of his associates and business partners, including Robert Moffat, the senior vice president at IBM who had been pegged as heir apparent to the IBM CEO.
Charges against the defendants include conspiracy and fraud. Investigators have declined to comment about the connection between Rajaratnam and those arrested today.