Wiretaps May Play Big Role In Insider Trading Case
Professor Joseph Grundfest is quoted in the following article on the use of wire-tapping in the Galleon insider trading case. NPR's Jim Zarolli has the story:
Raj Rajaratnam, the billionaire founder of the Galleon Group hedge fund company, goes on trial in New York on Tuesday, accused of participating in one of the largest insider trading cases in years.
U.S. officials say Rajaratnam made millions of dollars trading stocks based on information he received from a network of friends and associates at major companies including Intel, IBM and Goldman Sachs.
"I think Rajaratnam, if you have a look at the allegations that have come out, appears to be a bit like the spider at the center of the web," says Joseph Grundfest, a former commissioner of the Securities and Exchange Commission.
The use of the tapes "is one of the things that is going to make this trial really quite different from any other insider trading case that's been tried, at least in recent memory," says Grundfest, the former SEC commissioner who now teaches at Stanford Law School.