10 Biggest Insider Trading Scandals Ever to Rock Companies

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6. Galleon Group Scandal

In 2009 Galleon Group was one of the biggest hedge funds in the world, with over $7 billion in assets under management. Then it all came crashing down, when its founder and CEO Raj Rajaratnam was arrested on insider trading charges. He was accused, together with two of his friends from McKinsey & Company, Anil Kumar and Rajat Gupta, in one of the biggest insider trading scandals ever to rock companies. The total value of their illicit profits was estimated to be over $60 million by U.S. Attorney Preet Bharara. During the investigation, Kumar quickly turned on his friends and delivered devastating testimony that sealed the case. Gupta was sentenced to two years in prison, while Rajaratnam got 11 years, the longest sentence ever delivered for insider trading.

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