Tuesday, October 20, 2009

Galleon Legal Conundrum

Raj Rajaratnam has more than his fair share of legal problems. Everyone is focused on the spectacular insider trading issues. But the authorities first discovered him when they were investigating terrorist financing for the Tamil Tigers. There are probably still further charges to be laid on those accounts. Which may inadvertently implicate white collar insider trading with terrorism and money laundering.

The government may follow a two track system of prosecution. Insider trading and criminal money laundering for terrorist purposes. Wall Street may forgive him maybe even forget him but in the shady world of terrorist financing he may be dead man walking.

By the way he needed accomplices. Just like Bernie Madoff needed help Raj did not do the black finance stuff on his own. I am waiting to hear who is on the second team around the main players.