(11 May 2011)
AP Television
1. Various of convicted Wall Street boss Raj Rajaratnam leaving court past a thick scrum of photographers
2. SOUNDBITE (English) John Coffee, Columbia University Law School:
"I think this is going to be good news for the honest expert network, the honest hedge fund, the honest securities analyst and bad news for those who were crossing the line and making extraordinary profits through illegal means. Now the people who are doing it honestly can compete on a fairer playing field and have a better chance of attracting investors’ money."
Elizabeth Williams court sketches
3. Wide of Rajaratnam in court
4. Tight of Rajaratnam in court
5. Wide jury
6. Pan of verdict being read
AP Television
7. SOUNDBITE (English) John Coffee, Columbia University Law School:
"Highly paid finance professionals are uniquely susceptible to deterrence because they can calculate better than most the cost and benefits and the odds on getting caught and this very much changes the odds. It makes people recognise that insider trading, if you are going to do it on a reparative basis, is likely to get you caught because someone in your network gets caught and they will turn State’s evidence against everyone else and that is the way the American plea bargain system works."
8. Close of Rajaratnam in car
9. Rajaratnam being driven away from court
STORYLINE
A former Wall Street boss was convicted on Wednesday of making a fortune by coaxing a crew of corporate tipsters into giving him an illegal edge on blockbuster trades in technology and other stocks – what prosecutors called the largest insider trading case ever involving hedge funds.
Raj Rajaratnam was convicted of five conspiracy counts and nine securities fraud charges at the closely watched trial in federal court in Manhattan. The jury had deliberated since the 25th of April, and at one point was forced to re-start over again when one juror dropped out due to illness.
Prosecutors had alleged the 53-year-old Rajaratnam made profits and avoided losses totalling more than 60 (m) million US Dollars from illegal tips.
His Galleon Group funds, they said, became a multi-billion-dollar success at the expense of ordinary stock investors who didn’t have advanced notice of the earnings of public companies and of mergers and acquisitions.
On Wednesday, Rajaratnam sat at the defence table, a rarity for him at the trial, and stayed motionless as the verdict was read.
He will remain on bail with electronic monitoring until sentencing on the 29th of July – he faces a maximum sentence of 19 years in prison.
John Coffee of Columbia University Law School said he believes the verdict is good news for "honest" hedge funds.
Now the people who are doing it honestly can compete on a fairer playing field and have a better chance of attracting investors money," said Coffee.
Coffee also said he believed the verdict will act as a good deterrent to insider trading because he believes "finance professionals are uniquely susceptible to deterrence because they can calculate better than most the cost and benefit and the odds on getting caught and this very much changes the odds."
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