Rengan Rajaratnam

Rajaratnam was born in 1970 to a Tamil family in Sri Lanka.{{Cite web |last=Raghavan |first=Anita |date=2014-07-08 |title=Younger Rajaratnam Finally Out of His Brother's Shadow |url=https://archive.nytimes.com/dealbook.nytimes.com/2014/07/08/younger-rajaratnam-finally-out-of-his-brothers-shadow/ |access-date=2025-03-01 |website=DealBook |language=en}}{{Cite web |title=Rengan Rajaratnam - Age, Phone Number, Address, Contact Info, Public Records {{!}} Radaris |url=https://radaris.com/p/Rengan/Rajaratnam/ |access-date=2025-03-01 |website=radaris.com}} His father had raised himself from poverty and become a senior executive of a US company. Rengan moved a lot during his childhood, living in multiple countries including India, Singapore, Thailand and the United States. By age 12, Rengan was studying at a boarding school in the US. He attended the University of Pennsylvania and later graduated Stanford Graduate School of Business with an MBA in 1998.{{Cite web |last=Lattman |first=Peter |date=March 24, 2011 |title=Jurors Hear Rajaratnam Brothers Discuss Clearwire Deal |url=https://dealbook.nytimes.com/2011/03/24/galleon-jurors-hear-rajaratnam-brothers-discuss-clearwire-deal/ |website=DealBook}}

After graduating from Pennsylvania, Rengan worked at Mercer Consulting and then Morgan Stanley. After completing his MBA at Stanford, he worked as a Mergers and Acquisitions banker at Robertson Stephens.{{Cite web |last= |first= |title=Ava Builds - Our Team |url=https://avabuilds.com/our-team |access-date=2025-03-01 |website=Ava Builds |language=en-IN}} Embracing the tech boom, he functioned as CEO of Artinsider.com, an online sales start-up. However, the company was subsequently sold in 2000 to Bruce McGaw Graphics.

After Artinsider.com was successfully sold, Rengan took a career break for travel and reflection. Returning to the US six months later, he was reportedly caught up in the timeline of 9/11, with all his interviews scheduled for that week being cancelled. As a result, he then joined his brother Raj's hedge fund, Galleon Group. At Galleon, Rengan ran a small-cap technology portfolio.

Rengan then joined S.A.C. Capital Advisors (now Point 72 Capital), a hedge fund group founded by Steven A. Cohen. Cohen is currently the owner of New York Mets of Major League Baseball.{{Cite web |title=Steve Cohen |url=https://www.forbes.com/profile/steve-cohen/ |access-date=2025-03-01 |website=Forbes |language=en}} Rengan then started Sedna Capital in 2003 with an officemate from Galleon. The company received investment commitments for over USD 50 million but ended up getting investments of only USD 7 million. Operating from a cheap apartment, the company grew the fund to USD 100 million in two years.

After Sedna, Rengan rejoined Galleon in 2007. By 2009, Rengan had left his brother's fund and focused on other initiatives, According to Rengan, his brother Raj continues to owe him pay worth USD 13.5 million from his time at Galleon.{{Cite news |last= |date=2015-10-16 |title=Founder of Galleon Group Is Sued by Younger Brother |url=https://www.nytimes.com/2015/10/16/business/founder-of-galleon-group-is-sued-by-younger-brother.html |access-date=2025-03-01 |work=The New York Times |language=en-US |issn=0362-4331 |agency=Reuters}}{{Cite web |date=2015-10-16 |title=Galleon founder Rajaratnam, fund sued by his brother for $13.5 mln |url=https://www.cnbc.com/2015/10/16/galleon-founder-rajaratnam-fund-sued-by-his-brother-for-135-mln.html |access-date=2025-03-01 |website=CNBC |language=en}} Later, Rengan was involved in several other endeavours.

In 2016, Rengan joined the Mid-Atlantic Innocence Project (MAIP), a non-profit organisation focused on preventing and correcting wrongful convictions in Washington D.C., Maryland and Virginia. Initially, Rengan volunteered to screen cases, although MAIP does not typically use non-lawyers for this role. After two years, he was invited to join MAIP's Board of Directors. In 2019, he was elected Treasurer and Head of the Audit and Finance Committee, overseeing the organisation's financial management.{{Cite web |last= |first= |date= |title=Mid Atlantic Innocence Project - Nonprofit Explorer |url=https://projects.propublica.org/nonprofits/organizations/541993334 |access-date=2025-03-01 |website=ProPublica |language=en}} In 2020, he joined MAIP's Executive Committee, contributing to its long-term strategic planning. Since its founding, MAIP has helped to secure the release or exoneration of over 40 individuals, with Rengan playing a role in the organisation's financial and operational oversight.

Rengan was arrested in 2013 on insider trading charges.Maglich, Jordan, [https://www.forbes.com/sites/jordanmaglich/2013/03/21/authorities-charge-raj-rajaratnams-brother-with-insider-trading/ "Authorities Charge Raj Rajaratnam's Brother With Insider Trading"], Forbes, March 21, 2013 The Galleon Group insider trading investigation began with the investigation of Sedna Capital in 2003–2004.{{Cite web |last=Raghavan |first=Anita |date=2013-06-03 |title=An Earlier Hedge Fund Inquiry May Have Led to the SAC Capital Case |url=https://archive.nytimes.com/dealbook.nytimes.com/2013/06/03/an-earlier-hedge-fund-inquiry-may-have-led-to-the-sac-capital-case/ |access-date=2025-03-01 |website=DealBook |language=en}} Rengan was living in Brazil at the time of the charges. He reportedly immediately volunteered to return to face charges and clear his name.{{Cite web |last=Lattman |first=Peter |date=2013-03-25 |title=Brother of a Fallen Hedge Fund King Pleads Not Guilty |url=https://archive.nytimes.com/dealbook.nytimes.com/2013/03/25/rengan-rajaratnam-pleads-not-guilty-to-insider-trading-charges/ |access-date=2025-03-01 |website=DealBook |language=en}} The judge allowed jurors to hear about Rengan's decision to fly from Brazil to the US shortly after being indicted in 2013. The defence argued that this evidence showed Rengan knew he was innocent.{{Cite web |title=Fugitive’s Return to U.S. Upon Indictment Admissible to Show “Consciousness of Innocence” |url=https://cartelcapers.com/blog/fugitves-return-us-upon-indictment-admissible-show-consciousness-innocence/ |access-date=2025-03-01 |website=cartelcapers.com}}

Prosecutors alleged that Rengan regularly shared confidential information with his brother, Raj Rajaratnam but he was cleared by a jury in July 2014.

During Raj Rajaratnam's trial, the jury heard Rengan call former classmate and McKinsey junior partner David Palecek "a little dirty" and "boasted that he [Palecek] 'finally spilled his beans' by sharing corporate secrets."[https://dealbook.nytimes.com/2013/03/25/rengan-rajaratnam-pleads-not-guilty-to-insider-trading-charges/ "Brother of a Fallen Hedge Fund King Pleads Not Guilty"]. The New York Times. According to Bloomberg, when asked about AMD, Palecek allegedly said "Buy it, buy as much as you can as soon as you can."[https://www.bloomberg.com/news/2013-03-21/raj-rajaratnam-s-brother-charged-with-insider-trading.html "Raj Rajaratnam’s Brother Charged With Insider Trading"]. Bloomberg.

Rengan's own trial began before US District Court Judge Naomi Reice Buchwald in June 2014. He was "accused of trading on confidential information related to wireless broadband company Clearwire Corp. and chip maker Advanced Micro Devices Inc. in 2008" while at Galleon. He was said to have acted on information from his brother and profits from the trades were alleged to be about $800,000.Matthews, Christopher M., "Trial Turns to Brothers' Ties", Wall Street Journal, June 19, 2014, p. C3. Retrieved 2014-06-22.

During the trial, Judge Buchwald ruled that there was insufficient evidence to support the key charge of conspiracy to commit insider trading.{{Cite news |last=Matthews |first=Christopher M. |date=2014-05-02 |title=Justice Prosecutors Drop Some Fraud Charges Against Rengan Rajaratnam |url=https://www.wsj.com/articles/justice-prosecutors-drop-some-fraud-charges-against-rengan-rajaratnam-1399054195 |access-date=2025-03-01 |work=Wall Street Journal |language=en-US |issn=0099-9660}}{{Cite news |last=Raymond |first=Nate |last2=Ax |first2=Joseph |date=8 July 2014 |title=Rengan Rajaratnam cleared, U.S. insider trading streak snapped |url=https://www.reuters.com/article/business/rengan-rajaratnam-cleared-us-insider-trading-streak-snapped-idUSL2N0PJ1P0/ |url-status=live |access-date=1 March 2025 |work=Reuters}} This was a significant decision because conspiracy charges are often central to insider trading prosecutions, as they allow prosecutors to tie defendants to broader schemes.{{Cite news |last=Matthews |first=Christopher M. |date=2014-05-02 |title=Justice Prosecutors Drop Some Fraud Charges Against Rengan Rajaratnam |url=https://www.wsj.com/articles/SB10001424052702303948104579537922013238210 |access-date=2025-03-01 |work=Wall Street Journal |language=en-US |issn=0099-9660}} During a hearing, Judge Buchwald stated that the two counts on the Clearwire stock purchase are based on a flawed legal premise. She stated that no reasonable jury could conclude that Rengan had engaged in insider trading in the stocks of Clearwire.{{Cite web |last=Abrams |first=Matthew Goldstein, Ben Protess and Rachel |date=2014-07-08 |title=Prosecutors' Winning Streak on Insider Trading Cases Ends |url=https://archive.nytimes.com/dealbook.nytimes.com/2014/07/08/jury-clears-rengan-rajaratnam-in-insider-trading-case/ |access-date=2025-03-01 |website=DealBook |language=en}}

All counts were thrown out due to insufficient evidence except for two counts for USD 34,000.{{Cite web |date=2014-07-02 |title=Federal judge dismisses two counts against Rengan Rajaratnam in insider trading trial |url=https://www.jurist.org/news/2014/07/federal-judge-dismisses-two-counts-against-rengan-rajaratnam-in-insider-trading-trial/ |access-date=2025-03-01 |website=www.jurist.org |language=en-US}}{{Cite web |date=2014-07-01 |title=U.S. judge dismisses two counts in Rengan Rajaratnam insider case |url=https://www.yahoo.com/news/u-judge-dismisses-two-counts-205008032.html |access-date=2025-03-01 |website=Yahoo News |language=en-US}} He was found not guilty in July 2014, after four hours of jury deliberation on the original six counts of the indictment for which he was tried.{{Cite web |last=MarketWatch |date=2014-07-08 |title=Rengan Rajaratnam acquitted on insider conspiracy count |url=https://www.marketwatch.com/story/rengan-rajaratnam-found-not-guilty-of-insider-trading-report-2014-07-08-14915423 |access-date=2025-03-01 |website=MarketWatch |language=EN-US}} Rengan's not-guilt verdict broke the streak of Manhattan federal prosecutor Preet Bharara.{{Cite web |last=Maglich |first=Jordan |title=Jury Acquits Rengan Rajaratnam Of Conspiracy, Snaps DOJ's Insider Trading Winning Streak |url=https://www.forbes.com/sites/jordanmaglich/2014/07/08/jury-acquits-rengan-rajaratnam-of-conspiracy-snaps-dojs-insider-trading-streak/ |access-date=2025-03-01 |website=Forbes |language=en}} Bharara had held a 85-0 record for straight convictions over five years prior to his loss to Rengan who was found not guilty.{{Cite web |last=Morgan |first=Richard |date=2014-07-09 |title=Rengan Rajaratnam acquittal breaks Bharara’s perfect record |url=https://nypost.com/2014/07/08/rengan-rajaratnam-acquittal-breaks-bhararas-perfect-record/ |access-date=2025-03-01 |language=en-US}}{{Cite web |last=Pavlo |first=Walter |title=Rengan Rajaratnam Jury Got It Right, Did Other Juries Get It Wrong? |url=https://www.forbes.com/sites/walterpavlo/2014/07/09/rengan-rajaratnam-jury-got-it-right-did-other-juries-get-it-wrong/ |access-date=2025-03-01 |website=Forbes |language=en}}

Following his acquittal, jurors and legal experts criticised the strength of the government's case against Rengan. Speaking outside the courthouse, juror Miriam Godreich stated that the evidence was "so underwhelming that you couldn't convict," adding that the trial felt like an attempt to retry Raj Rajaratnam rather than focus on Rengan.{{Cite news |last=Matthews |first=Christopher M. |date=2014-07-08 |title=Jury Acquits Rengan Rajaratnam in Insider-Trading Case |url=https://www.wsj.com/articles/jury-acquits-rengan-rajaratnam-in-insider-trading-case-1404845184 |access-date=2025-03-01 |work=Wall Street Journal |language=en-US |issn=0099-9660}} The forewoman for the jury, Isabel Tirado, stated to media that “there was no evidence, period.”{{Cite web |last=Abrams |first=Matthew Goldstein, Ben Protess and Rachel |date=2014-07-08 |title=Prosecutors' Winning Streak on Insider Trading Cases Ends |url=https://archive.nytimes.com/dealbook.nytimes.com/2014/07/08/jury-clears-rengan-rajaratnam-in-insider-trading-case/ |access-date=2025-03-01 |website=DealBook |language=en}} Another juror, Catherine Wolcott, stated that Rengan did not engage in illegal trading like his brother Raj. She said "Raj kept his cards close to the vest. Rengan was sort of a puppy playing in the field, trying to get his attention." She also stated, “"We were waiting to hear more about Rengan, who was the actual person on trial. By the end, we were all like, 'Where's the evidence?'”

Legal scholars also questioned the prosecution's approach, with Thomas Lee Hazen, a professor at the University of North Carolina School of Law, noting that Judge Buchwald's decision to dismiss the two securities fraud counts before the verdict was a pivotal moment.Judge Buchwald ruled that prosecutors had failed to prove that Rengan knew the alleged insider tip had been exchanged for a benefit, calling some of their arguments "singularly unpersuasive." As a result, jurors were left to deliberate only on a conspiracy charge, on which they ultimately found him not guilty.

Rengan is married to Dr. Manisha Singal, a healthcare executive and physician based in Washington, DC and has one son. He has older brothers Raj and Rajakanthan and two sisters, Vathani and Shanthini. According to court documents, as of 2025, Rengan has not associated with his convicted brother Raj since 2011.Motion Document. U.S. Securities and Exchange Commission, January 27, 2025. https://www.sec.gov/files/litigation/apdocuments/3-16245-2025-01-27-motion.pdf. Accessed March 1, 2025.

{{Reflist}}

• [http://www.ft.com/intl/cms/s/0/a19d8576-4e6c-11e0-98eb-00144feab49a.html Third McKinsey partner named in insider trading trial]
• [https://dealbook.nytimes.com/2011/03/14/government-witness-in-galleon-trial-tells-of-pre-2008-tips Jury Hears Dozen Taped Calls at Galleon Trial]

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Category:1971 births

Category:American hedge fund managers

Category:Living people