Founder of Galleon hedge funds Raj Rajaratnam comes to the Federal Court in Manhattan in New York on April 26, 2011.
Credit: Reuters/Brendan McDermidBy Grant mccool and Jonathan StempelNEW YORK | Tue 5: 45 pm EDT on April 26, 2011
NEW YORK (Reuters) - the jury in the trial of manager Raj Rajaratnam hedge funds requested to hear repetitions of phone taps that prosecutors believe the centerpiece of more privileged Wall Street case in a generation.
The voice of Rajaratnam full of a federal court in Manhattan on Tuesday as heavy jurors a second charge of Government of the day as the founder of Galleon group made illegally tens of millions of dollars by trading in advice on mergers and corporate earnings that had not yet announced.
Defence lawyers argue that the offices of former billionaire were guided by research and public information.
The jurors deliberated by 7-1/2 hours to four hours of deliberations Monday. It is expected to resume their discussion of the evidence on Wednesday.
In a separate case, a former trader associated with the Galleon became the latest to admit irregularities in the radical federal probe in privileged on Wall Street.
Craig Drimal, who said prosecutors had an Office in premises of Galleon but was not an employee when he was arrested in November 2009, pleaded guilty to charges of conspiracy and securities fraud. His audience was held four floors above the room where 12 members of the jury considering the case of Rajaratnam.
Prosecutors accuse Rajaratnam make unlawful 63.8 million dollars between 2003 and 2009 March through the advice of a network of people highly placed as Rajat Gupta, a former director of Goldman Sachs Group Inc and the head in the world of the consulting firm McKinsey & Co.
The members of the jury must be unanimous for a verdict of guilt in any of the 14 charges of conspiracy and securities fraud.
If convicted, Rajaratnam, 53, could face a prison sentence of up to 25 years.
Detention in October 2009 of Rajaratnam was part of an investigation that prosecutors described as the probe more insider in funds from coverage in the register.
PHONE TAPS
The jury spent an hour listening to nine taps of telephone between the accused and his brother, trader Galleon Rengan Rajaratnam, companions and five old friends and partners.
Two of them, partner McKinsey Anil Kumar and former Intel Corp Executive Rajiv Goel, pleaded guilty and were witnesses to key test of the Government against Rajaratnam.
Calls are among the more than 40 jury heard during the trial, now in its eighth week before Judge Richard Holwell's United States District.
The jurors took notes and read transcripts which were projected on screens in front of them, as the recordings were played.
Rajaratnam, which has been in and out of the courtroom during deliberations, Miró, straight, while the members of the jury heard the recordings. A few friends and a couple of dozens of reporters sat in public banks behind him.
In the case of broader Galleon, 21 of 26 people have been found guilty. Rajaratnam born in Sri Lanka is the only accused to go to trial so far.
The attention given to the case is reminiscent of the great scandal of the eighty speculator Ivan Boesky to domestic and trade financier Michael Milken junk bonds.
Many of the defendants were recorded in taps, phone approved by the Court, used traditionally to probe the families of organized crime, political corruption and drug trafficking.
Rajaratnam, Drimal and other defendants failed in their bids before independent judges wiretap evidence excluded on privacy and other reasons.
Drimal, 54, said judge Richard Sullivan of district of United States traded in shares of computer network equipment maker 3Com Corp and Canadian drug company Axcan Pharma Inc, based on advice from lawyers working in the operations of fusion. Prosecutors said that these transactions led to more than 6.4 million of dollars in illegal profits.
"At the time that I made these transactions, I thought my conduct was unlawful and wrong, and I deeply regret these actions which have caused such pain to my family and friends," Drimal, said.
Drimal planned to go to trial with three others on 16 May. It is free on bail until sentencing on September 9. The Government has suggested a term of imprisonment of up to seven years.
His lawyer, JaneAnne Murray, refused to comment.
The cases are United States v Raj Rajaratnam et al., District Court of United States, Southern District of New York, no. 09-01184; and United States v Goffer et to the. in the same court, no. 10-00056.
(Reporting by Grant McCool, Jonathan Stempel and Basil Katz;) Edition by Tim dobbyn, Gerald e. McCormick and Ted kerr)
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