Rajaratnam Guilty in Insider Trading Case

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It took weeks of deliberation, but a jury has convicted billionaire hedge-fund manager Raj Rajaratnam of fraud and conspiracy, finding him guilty on all 14 counts on Wednesday. The former Galleon Group chief could face 25 years in prison, although he’s expected to appeal the decision. The case, which includes 24 other defendants and drew in Goldman Sachs, captivated Wall Street. Using extensive wire taps, federal agents built their case against Rajaratnam, who had gone from Sri Lankan immigrant to financial rock star, finding evidence that he was using inside information to profit. “The defendant knew the rules, but he did not care,” said a prosecutor, Reed Brodsky, in his summation. “Cheating became part of his business model.”