Attorney wants Galleon chief's bail reduced to $25 million
31 Oct 2009
Raj Rajaratnam, founder of the US-based Galleon Group hedge fund accused of directing operations in an insider-trading racket, said on Thursday that he is being treated worse than Bernard Madoff and has asked for his bail to be cut to $25 million.
Rajaratnam, 52, requested in a letter that his $100 million bond be reduced. The letter, written by his attorney John Dowd to US magistrate judge Frank Maas in New York, points out that the case against Rajaratnam is weak. The letter goes on to say that Rajartnam would not flee as he intended to clear his name and needed permission to travel within the US to meet lawyers and sell his company.
Rajratnam's movements have been restricted to within 110 miles of New York by a court order.
According to Dowd, Rajaratnam is considering a number of possible business options for winding-up of Galleon, including a potential sale of Galleon to other interested parties to preserve jobs for many Galleon employees.
Rajaratnam allegedly received tips in a $20 million scheme from several high-ranking corporate executives, including co-defendants Rajiv Goel, director of strategic investments with Intel Capital and Anil Kumar, a director at McKinsey & Co according to prosecutors.
Goel was freed on Wednesday on a $75,000 bail following a hearing in a Manhattan federal court.
After Rajaratnam's 16 October arrest, prosecutors said he might flee to his native Sri Lanka and pressed for his imprisonment until trial. A judge set a $100 million bail with a security of $20 million in cash and property. Rajaratham has posted a cash amount of $2.5 million and a Manhattan apartment valued $17.5 million.
Dowd said yesterday that $100 million was excessive in citing Madoff had provided $10 million bond after the convicted money manager confessed to wrongdoing.
