NEW YORK — An insider trading trial is set to start in New York for the brother of an imprisoned one-time billionaire hedge fund founder.
Rengan Rajaratnam goes on trial Tuesday, three years after his brother was convicted in Manhattan federal court on insider trading charges. The brother, Raj Rajaratnam, is serving an 11-year prison sentence. The Supreme Court on Monday declined to hear further appeals of his case.
Rengan Rajaratnam has pleaded not guilty to securities fraud charges. The charges against him are an extension of charges brought against his brother and two dozen other defendants who pleaded guilty or were convicted at trial. Prosecutors made extensive use of wiretaps in an insider trading case for the first time during the federal probe, which began over six years ago.
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