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Galleon founder pleads not guilty to fraud

Published on 22 Dec 2009 under category: legal

A hedge fund founder has pleaded not guilty to fraud crimes.

Raj Rajaratnam, the man behind Galleon, is accused of securities fraud.

He is one of 21 people facing charges in the insider trading case.

It is alleged that the individuals used their experience and knowledge to generate $30 million (£18 million) in illegal profit.

Mr Rajartanma and Danielle Chiesi wer both arrested in connection with these fraud crimes in October and both have pleaded not guilty to the charges.

The pair, who are the only two to be formally indicted so far, are now set for a bail hearing on January 8th.

US authorities have suggested that the trial could start next summer and last for around one month.

Earlier this week, it was revealed that Whitehall fraud crimes have cost the British taxpayer £12 million over the past three years and £4.2 million in the last 12 months alone.

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.