Rengan Rajaratnam, acquitted of criminal insider trading charges this month, is seeking more time to talk to the U.S. Securities and Exchange Commission to resolve civil claims by the agency.
Regulators and Rajaratnam, the younger brother of convicted inside trader Raj Rajaratnam, asked U.S. District Judge John G. Koeltl in Manhattan in a letter today to extend a postponement of the SEC’s case by 60 days “to discuss resolving the pending litigation.” Koeltl put the SEC case on hold in December to allow time for Rajaratnam’s criminal trial to conclude.
The SEC sued Rengan Rajaratnam in 2013 over his alleged role in an insider trading conspiracy with his brother from 2006 to 2008. The SEC claimed he made more than $3 million in illegal profits for himself and for Galleon Group LLC, the firm co-founded by Raj Rajaratnam.
Rengan Rajaratnam’s July 8 acquittal on criminal insider trading charges was the first loss by Manhattan federal prosecutors in a seven-year crackdown on insider trading at hedge funds.
Raj Rajaratnam was convicted of insider trading in 2011 and is serving an 11-year sentence in a medical prison in Massachusetts.
The case is SEC v. Rajaratnam, 13-cv-01894, U.S. District Court, Southern District of New York (Manhattan).
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