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Galleon Indictments In US – Report

Nick Parmee

16 December 2009

A federal grand jury has issued indictments against the founder of the Galleon hedge fund Raj Rajaratnam and against Danielle Chiesi, a former Bear Stearns employee, according to the Financial Times.

The two are accused with four others in relation to insider trading allegations.

The case, added to other high-profile alleged financial misbehaviour and scandals in the financial markets, especially that of Ponzi fraudster Bernard Madoff, highlight how due diligence checks on investments is a crucial issue for wealth managers and their clients.