Financial frauds due to inside trading and the cases filed by Preet Bharara

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updated Jul 05, 2011

Rajaratnam is the billionaire hedge fund investor who used to manage the Galleon Group. On May 11, 2011, he was found guilty of fraud and conspiracy, and convicted of all of the 14 counts against him.

Since August 2009, Bharara's office has charged nearly 50 people with insider trading. 35 of them have pled guilty.

The case against Rajaratnam was based on both aggressive prosecutorial methods and unprecedented strategy. Federal authorities used wiretaps to glean information on actual conversations involving insider trading for the first time.

The office of the United States attorney for the Southern District of New York is considered to be the most prestigious federal prosecutor's position, aside from Washington. Some of the country's most high profile cases are handled by the over 200 attorneys reporting to Bharara, including the case of Bernard L. Madoff and his multibillion-dollar Ponzi scheme.

Other high profile cases have included Faisal Shahzad in the Times Square bomb plot, Ahmed Khalfan Ghailani, the first Guantánamo Bay detainee tried in the civilian system, and four men charged in a plot to bomb Bronx synagogues.

United States
According to the May 13th nytimes.com article, ''Preet Bharara'', Bharara was quoted as saying in a series of speeches: ''When sophisticated business people begin to adopt the methods of common criminals, we have no choice but to treat them as such. To use tough tactics in these circumstances is not being heavy-handed; it is being even-handed.''

Bharara is not without his critics, however, who point to the fact that he has not filed criminal charges against those at the heart of the financial crisis. This month, after ''his office filed a civil mortgage-fraud lawsuit against Deutsche Bank, he'' contended there wasn't enough evidence to warrant a criminal complaint, according to the nytimes.com article.

According to the May 12th washingtonpost.com article, ''Prosecutor credited with bringing down Galleon head has had successful run'', he was quoted as having told New York University law students in 2009 regarding financial fraud that it ''has been with us through the ages ... Unscrupulous cavemen no doubt fleeced unsuspecting Neanderthals out of clubs and animal skins when the opportunity arose.''

That's putting things in perspective for you. Keep up the good work Preet!
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