Saturday, March 5, 2011

It's On!: Raj Rajaratnam to Battle DOJ Over Insider Trading Charges

Raj Rajaratnam goes to trial Tuesday in his fight against the DOJ and the SEC.

Rajaratnam totally blew off the DOJ tactic of attempting to reach a settlement before trial. WSJ reports:
In late January, prosecutors contacted [Rajaratnam's lead attorney] Mr. Dowd to explore whether Mr. Rajaratnam was interested in negotiating a plea agreement, people familiar with the matter say. Mr. Rajaratnam quickly brushed aside the overture, so a specific potential deal never was discussed, they say.
According to WSJ:
Mr. Rajaratnam, raised in Sri Lanka, has told associates he is confident he will win. For months, he has gathered trading data and other material to help Mr. Dowd build his case.

Mr. Rajaratnam was inspired, according to a person who knows him, by an early call of support from entrepreneur Mark Cuban, who himself is battling the U.S. in a civil insider-trading case. Mr. Cuban says he told Mr. Rajaratnam: "Just because the government says something doesn't make it true."
Rajaratnam has hired a mean S.O.B. attorney for his battle. WSJ again:
Behind Mr. Rajaratnam's fighting stance is Mr. [John] Dowd, a 69-year-old former military lawyer known for being willing to mix it up with legal foes. "He has a Marine's view of combat and takes it to court with him," says Washington lawyer James Sharp, a longtime friend.

The son of a retail executive in Boston, Mr. Dowd is a Red Sox fan who tools around the harbor at Chatham, Mass., in his 26-foot fishing boat and sometimes entertains relatives by rubbing lobsters on the back of their shells to put them to sleep, colleagues say.
WSJ reports that Rajaratnam's legal bill could reach $40 million.

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