The younger brother of jailed hedge fund manager Raj Rajaratnam pleaded not guilty to insider trading charges Monday.
The Associated Press reported that Rengan Rajaratnam was arrested on Sunday after arriving to New York from his home in Brazil. He was released on $1 million bail after Monday’s court appearance.
eVestment previously reported that Rengan Rajaratnam was indicted last week after prosecutors accused him 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 New York-based hedge fund firm Raj Rajaratnam founded.
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.