The insider trading lawsuit filed by the Securities and Exchange Commission against the younger brother of convicted hedge fund manager Raj Rajaratnam has been delayed by a New York federal judge.
Bloomberg reported that U.S. District Judge John Koeltl approved Rengan Rajaratnam’s request to a six-month postponement of the SEC case in order to prioritize the defendant’s criminal case, which is set for June 6. The SEC case has been rescheduled for November 8.
eVestment reported in March that the Rengen Rajaratnam had pleaded not guilty to charges that he conspired with his older brother, Raj Rajaratnam, to trade on confidential information 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.