The younger brother of jailed hedge fund manager Raj Rajaratnam was indicted Thursday on charges of insider trading.
According to Reuters, prosecutors accused Rengan Rajaratnam of conspiring with his older brother to trade on confidential information regarding Clearwire Corp. and Advanced Micro Devices Inc. in 2008 that earned his firm $1.2 million in illegal profit.
The younger Rajaratnam was a portfolio manager at Galleon Group, the hedge fund firm Raj Rajaratnam founded.
Charged with six counts of securities fraud and one count of conspiracy, Rengen Rajaratnam could face up to 20 years of prison for each fraud count.
Raj Rajaratnam is currently serving an 11-year prison sentence for profiting as much as $64 million on trades, stretching back to 2003, based on inside information he received from his co-conspirators about companies such as Google and Goldman Sachs.